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UNITED NATIONS DOCUMENTS, 1941-1945 



THE ROYAL INSTITUTE 

OF INTERNATIONAL AFFAIRS 

London: Chatham House, St James's Square, S.W.I. 

New Tork: 542 Fifth Avenue, New York 19. 



Toronto Bombay 

Melbourne Cape Town 

OXFORD UNIVERSITY PRESS 



UNITED NATIONS 
DOCUMENTS 



LONDON & NEW YORK 

Royal Institute of International 
Affairs 



The Royal Institute of International Affairs is an unofficial and non- 
political body, founded in 1920 to encourage and facilitate the scientific 
study of international questions. The Institute, as such, is precluded by the 
terms of its Royal Charter from expressing an opinion on any aspect of 
international affairs. 



First published September 1946 
Reprinted January igtf 



PRINTED IN GREAT BRITAIN AT 

THE BROADWATER PRESS, WELWYN GARDEN CITY 
HERTFORDSHIRE 



CONTENTS 

PREFACE 7 

DECLARATION OF SOLIDARITY OF THE UNITED 

NATIONS 
St James's Palace, June 12, 1941 9 

ATLANTIC CHARTER 

August 14, 1941 9 

INTER-ALLIED DECLARATION OF ADHERENCE 
TO THE ATLANTIC CHARTER 

St James's Palace, September 24, 1941 10 

UNITED NATIONS DECLARATION 

Washington, January i, 1942 u 

Lend-lease Agreement: AGREEMENT BETWEEN. THE 
GOVERNMENTS OF THE UNITED KINGDOM 
AND THE UNITED STATES OF AMERICA ON 
THE PRINCIPLES APPLYING TO MUTUAL 
AID IN THE PROSECUTION OF THE WAR 
AGAINST AGGRESSION (Article 7) 
Washington, February 23, 1942 12 

MOSCOW CONFERENCE 

Communique, November i, 1943 13 

1. DECLARATION OF THE FOUR NATIONS ON GENERAL* 

SECURITY 1 3 

2. DECLARATION ON ITALY 14 

3. DECLARATION ON AUSTRIA 15 

4. DECLARATION ON ATROCITIES 15 

UNITED NATIONS RELIEF AND REHABILITATION 

ADMINISTRATION 
Constitution, November 9, 1943 16 

TEHERAN CONFERENCE 

Declaration, December i, 1943 24 

CAIRO CONFERENCE 

Communique", December i, 1943 25 

Philadelphia Charter: DECLARATION ADOPTED BY 
THE INTERNATIONAL LABOUR CONFER- 
ENCE 
Philadelphia, May 10, 1944 25 

Vretton Woods: UNITED NATIONS MONETARY AND 

FINANCIAL CONFERENCE 
July 1-22, 1944 28 



DUMBARTON OAKS CONVERSATIONS ON WORLD 
ORGANIZATION 

August 2 1 -October 7, 1944 92 

INTERNATIONAL CIVIL AVIATION CONFERENCE 

Chicago, December 7, 1944 104 

CRIMEA CONFERENCE, Yalta 

Report, February n, 1945 142 

SAN FRANCISCO CONFERENCE 

June 26, 1945 148 

1. CHARTER OF THE UNITED NATIONS 148 

2. STATUTE OF THE WORLD COURT 176 

3. AGREEMENT ESTABLISHING THE PREPARATORY 

COMMISSION 191 

BERLIN CONFERENCE, Potsdam 

Report, August 2, 1945 193 

FOOD AND AGRICULTURE ORGANIZATION OF 
THE UNITED NATIONS 

1. Constitution 207 

2. Resolutions 217 
Adopted at Conference in Quebec, November, 1945 

INTERNATIONAL LABOUR ORGANIZATION: 
RESOLUTION CONCERNING THE RELATION- 
SHIP BETWEEN THE I.L.O. AND THE UNITED 
NATIONS 221 

Adopted at its 27th Session, Paris, November, 1945 

UNITED NATIONS EDUCATIONAL, SCIENTIFIC, 

AND CULTURAL ORGANIZATION 225 

Constitution, November 16, 1945 

PROPOSALS FOR CONSIDERATION BY AN INTER- 
NATIONAL CONFERENCE ON TRADE AND 
EMPLOYMENT 235 

December 6, 1945 

MOSCOW CONFERENCE 257 

Communique, December 24 and 28, 1945 

ADDENDUM 

Statement by the Delegations of the Four Sponsoring 
Governments on Voting Procedure in the Security 
Council, June 7, 1945. 267 



PREFACE 

Chatham House has for some time past received inquiries for 
the documents of the United Nations in an easily accessible form. 
That all the documents here printed have never previously been 
reproduced between the same covers is the justification for this 
edition. The documents printed here include those concerning the 
origin of the United Nations, its Charter and other international 
organizations formed in association with it down to the end of 1945. 
In view of the length of some of the documents and to economize 
space, preambles, appendices, lists of delegates or signatories, and 
other sections have in some cases been omitted. 

The criterion of selection has been the forward-looking decisions 
of the United Nations. For example, with the exception of the 
original United Nations Declaration, no part of a communique" or 
declaration by the United Nations (or the Big Three on their behalf) 
dealing solely with the actual prosecution of the war has been in- 
cluded. But since the peace settlement must to some extent condition 
relations between the United Nations in the future, sections dealing 
with policy towards Italy, Austria, Germany, and Japan have been 
included. It is hoped that in due course these and succeeding United 
Nations documents will appear in the annual volumes of Documents 
on International Affairs, published by the Institute. 

For the sake of consistency, certain minor typographical altera- 
tions have been made which in no way affect the sense. 



UNITED NATIONS DOCUMENTS 

I 94 I - I 945 



INTER-ALLIED MEETING 
Held in London at St James's Palace on June 12, 1941 

RESOLUTION 1 

The Governments of the United Kingdom of Great Britain and 
Northern Ireland, Canada, Australia, New Zealand and South 
Africa, the Government of Belgium, the Provisional Czechoslovak 
Government, the Governments of Greece, Luxemburg, the 
Netherlands, Norway, Poland and Yugoslavia, and the Repre- 
sentatives of General de Gaulle, leader of Free Frenchmen, 

Engaged together in the fight against aggression, 

Are resolved 

1. That they will continue the struggle against German or 
Italian oppression until victory is won, and will mutually assist each 
other in this struggle to the utmost of their respective capacities; 

2. That there can be no settled peace and prosperity so long as 
free peoples are coerced by violence into submission to domination 
by Germany or her associates, or live under the threat of such 
coercion; 

3. That the only true basis of enduring peace is the willing 
co-operation of free peoples in a world in which, relieved of the 
menace of aggression, all may enjoy economic and social security; 
and that it is their intention to work together, and with other free 
peoples, both in war and peace to this end. 



JOINT DECLARATION BY THE PRESIDENT OF THE 
UNITED STATES OF AMERICA AND MR WINSTON 
CHURCHILL, REPRESENTING HIS MAJESTY'S GOVERN- 
MENT IN THE UNITED KINGDOM, KNOWN AS THE 
ATLANTIC CHARTER 2 

August 14, 1941 

The President of the United States and the Prime Minister, Mr 
Churchill, representing His Majesty's Government in the United 
Kingdom, being met together, deem it right to make known certain 
common principles in the national policies of their respective coun- 
tries on which they base their hopes for a better future for the world. 

1 Cmd. 6285. * Cmd. 6321. 

9 



ATLANTIC CHARTER 

First, their countries seek no aggrandisement, territorial or other. 

Second, they desire to see no territorial changes that do not accord 
with the freely expressed wishes of the peoples concerned. 

Third, they respect the right of all peoples to choose the form of 
government under which they will live; and they wish to see sover- 
eign rights and self-government restored to those who have been 
forcibly deprived of them. 

Fourth, they will endeavour, with due respect for their existing 
obligations, to further the enjoyment by all States, great or small, 
victor or vanquished, of access, on equal terms, to the trade and to 
the raw materials of the world which are needed for their economic 
prosperity. 

Fifth, they desire to bring about the fullest collaboration between 
all nations in the economic field, with the object of securing for all 
improved labour standards, economic advancement and social 
security. 

Sixth, after the final destruction of Nazi tyranny, they hope to see 
established a peace which will afford to all nations the means of 
dwelling in safety within their own boundaries, and which will afford 
assurance that all the men in all the lands may live out their lives 
in freedom from fear and want. 

Seventh, such a peace should enable all men to traverse the high 
seas and oceans without hindrance. 

Eighth, they believe all of the nations of the world, for realistic as 
well as spiritual reasons, must come to the abandonment of the use 
of force. Since no future peace can be maintained if land, sea or air 
armaments continue to be employed by nations which threaten, or 
may threaten, aggression outside of their frontiers, they believe, 
pending the establishment of a wider and permanent system of 
general security, that the disarmament of such nations is essential. 
They will likewise aid and encourage all other practicable measures 
which will lighten for peace-loving peoples the crushing burden of 
armaments. 



INTER-ALLIED MEETING 
Held in London at St James's Palace on September 24, 1941 

RESOLUTION 1 

The Governments of Belgium, Czechoslovakia, Greece, Luxem- 
burg, the Netherlands, Norway, Poland, Union of Soviet Socialist 
Republics and Yugoslavia, and the representatives of General de 
Gaulle, leader of Free Frenchmen, 
1 Cmd. 6315. 

10 



UNITED NATIONS DECLARATION 

Having taken note of the Declaration recently drawn up by the 
President of the United States and by the Prime Minister, Mr 
Churchill, on behalf of His Majesty's Government in the United 
Kingdom, 

Now make known their adherence to the common principles 
of policy set forth in that Declaration and their intention to co- 
operate to the best of their ability in giving effect to them. 



DECLARATION BY UNITED NATIONS 1 

Washington, January i, 1942 

A JOINT DECLARATION BY THE UNITED STATES OF AMERICA, THE UNITED 
KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND, THE UNION OF 
SOVIET SOCIALIST REPUBLICS, CHINA, AUSTRALIA, BELGIUM, CANADA, 
COSTA RICA, CUBA, CZECHOSLOVAKIA, DOMINICAN REPUBLIC, EL SALVA- 
DOR, GREECE, GUATEMALA, HAITI, HONDURAS, INDIA, LUXEMBURG, 
NETHERLANDS, NEW ZEALAND, NICARAGUA, NORWAY, PANAMA, 
POLAND, SOUTH AFRICA, YUGOSLAVIA 

The Governments signatory hereto, 

Having subscribed to a common programme of purposes and 
principles embodied in the Joint Declaration of the President of the 
United States of America and the Prime Minister of the United 
Kingdom of Great Britain and Northern Ireland, dated August 14, 
1941, known as the Atlantic Charter, 

Being convinced that complete victory over their enemies is es- 
sential to defend life, liberty, independence and religious freedom, 
and to preserve human rights and justice in their own lands as well 
as in other lands, and that they are now engaged in a common 
struggle against savage and brutal forces seeking to subjugate the 
world, declare: 

1. Each Government pledges itself to employ its full resources, 
military or economic, against those members of the Tripartite Pact 
and its adherents with which such government is at war. 

2. Each Government pledges itself to co-operate with the Govern- 
ments signatory hereto and not to make a separate armistice or 
peace with the enemies. 

The foregoing declaration may be adhered to by other nations 
which are, or which may be, rendering material assistance and con- 
tributions in the struggle for victory over Hitlerism. 

1 Cmd. 6388. 

II 



AGREEMENT BETWEEN THE GOVERNMENTS OF THE 
UNITED KINGDOM AND THE UNITED STATES OF 
AMERICA ON THE PRINCIPLES APPLYING TO MUTUAL 
AID IN THE PROSECUTION OF THE WAR AGAINST 
AGGRESSION 1 

Washington, February 23, 1942 

Article 7 

In the final determination of the benefits to be provided to the 
United States of America by the Government of the United King- 
dom in return for aid furnished under the Act of Congress of March 
u, 1941, the terms and conditions thereof shall be such as not to 
burden commerce between the two countries, but to promote 
mutually advantageous economic relations between them and the 
betterment of world-wide economic relations. To that end, they shall 
include provision for agreed action by the United States of America 
and the United Kingdom, open to participation by all other coun- 
tries of like mind, directed to the expansion, by appropriate inter- 
national and domestic measures, of production, employment, and 
the exchange and consumption of goods, which are the material 
foundations of the liberty and welfare of all peoples; to the elimina- 
tion of all forms of discriminatory treatment in international com- 
merce, and to the reduction of tariffs and other trade barriers; and, 
in general, to the attainment of all the economic objectives set forth 
in the Joint Declaration made on August 14, 1941, by the President 
of the United States of America and the Prime Minister of the 
United Kingdom. 

At an early convenient date conversations shall be begun between 
the two Governments with a view to determining, in the light of 
governing economic conditions, the best means of attaining the 
above-stated objectives by their own agreed action and of seeking 
the agreed action of other like-minded Governments. 



1 Cmd. 6391. 

12 



MOSCOW CONFERENCE 1 
October 19-30, 1943 

DECLARATION OF THE FOUR NATIONS ON GENERAL SECURITY 

The Governments of the United States, the United Kingdom, the 
U.S.S.R. and China: united in their determination, in accordance 
with the declaration by the United Nations of January i, 1942, and 
subsequent declarations, to continue hostilities against those Axis 
Powers with which they respectively are at war until such Powers 
have laid down their arms on the basis of unconditional surrender; 
conscious of their responsibility to secure the liberation of themselves 
and the people allied to them from the menace of aggression; recog- 
nizing the necessity of ensuring rapid and orderly transit from war to 
peace and of establishing and maintaining international peace and 
security with the least diversion of this world's human and economic 
resources for armaments; jointly declare: 

1. That their united action, pledged for the prosecution of the 
war against their respective enemies, will be continued for the 
organization and maintenance of peace and security; 

2. That those of them at war with a common enemy will act to- 
gether in all matters relating to the surrender and disarmament of 
that enemy; 

3. That they will take all measures deemed by them to be necessary 
to provide against any violation of the terms imposed on the enemy; 

4. That they recognize the necessity of establishing at the earliest 
practicable date a general international organization, based on the 
principle of the sovereign equality of all peace-loving States and open 
to membership by all such States, large or small, for the maintenance 
of international peace and security; 

5. That for the purpose of maintaining international peace and 
security pending the re-establishment of law and order and the 
inauguration of a system of general security they will consult with 
each other, and, as occasion requires, with other members of the 
United Nations, with a view to joint action on behalf of the com- 
munity of Nations; 

6. That after the termination of hostilities they will not employ 
their military forces within the territories of other States except for 
the purposes envisaged in this declaration and after joint consulta- 
tion, and; 

7. That they will confer and co-operate with one another and 
with other members of the United Nations to bring about a prac- 
ticable general agreement with respect to the regulation of arma- 
ments in the post-war period. 

1 Foreign Office News Department Press Communique" of November i, 1943. 

13 



FIRST MOSCOW CONFERENCE 

DECLARATION ON ITALY 

The Foreign Secretaries of the United States, United Kingdom 
and Soviet Union have established that their three Governments are 
in complete agreement that Allied policy towards Italy must be 
based upon the fundamental principle that Fascism and all its evil 
influence and emanations shall be utterly destroyed and that the 
Italian people shall be given every opportunity to establish govern- 
mental and other institutions based upon democratic principles. 

The Foreign Secretaries of the United States and United King- 
dom declare that the action of their governments from the inception 
of invasion of Italian territory, in so far as paramount military re- 
quirements have permitted, has been based upon this policy. 

In furtherance of this policy in the future the Foreign Secretaries 
of the three Governments are agreed that the following measures 
are important and should be put into effect: 

1 . It is essential that the Italian Government should be made more 
democratic by the introduction of representatives of those sections of 
the Italian people who have always opposed Fascism. 

2. Freedom of speech, of religious worship, of political belief, 
of press and of public meeting shall be restored in full measure to the 
Italian people who shall also be entitled to form anti-Fascist politi- 
cal groups. 

3. All institutions and organizations created by the Fascist regime 
shall be suppressed. 

4. All Fascist or pro-Fascist elements shall be removed from ad- 
ministration and from institutions and organizations of a public 
character. 

5. All political prisoners of the Fascist regime shall be released 
and accorded a full amnesty. 

6. Democratic organs of local government shall be created. 

7. Fascist chiefs and army generals known or suspected to be war 
criminals shall be arrested and handed over to justice. 

In making this declaration the three Foreign Secretaries recog- 
nize that so long as active military operations continue in Italy the 
time at which it is possible to give full effect to the principles set out 
above will be determined by the C. in G. on the basis of instructions 
received through the combined Chiefs of Staff. The three Govern- 
ments parties to this declaration will at the request of any one of 
them consult on this matter. 

It is further understood that nothing in this resolution is to operate 
against the right of the Italian people ultimately to choose their own 
form of government. 

14 



FIRST MOSCOW CONFERENCE 

DECLARATION ON AUSTRIA 

The Governments of the United Kingdom, the Union of Soviet 
Socialist Republics and the United States have agreed that Austria, 
the first free country to fall a victim to Nazi aggression, shall be 
liberated from German domination. 

They regard the annexation imposed upon Austria by Germany's 
penetration of March 15, 1938, as null and void. They consider 
themselves in as no way bound by any changes effected in Austria 
since that date. They declare they wish to see re-established a free 
and independent Austria, and thereby to open the way for the 
Austrian people themselves as well as those neighbouring states 
which will be faced with similar problems, to find that political and 
economic security which is the only basis for lasting peace. 

Austria is reminded however that she has a responsibility which 
she cannot evade for participation in the war on the side of Hitlerite 
Germany and that in the final settlement account will inevitably be 
taken of her own contribution to her liberation. 

DECLARATION ON ATROCITIES 

The United Kingdom, the United States and the Soviet Union 
have received from many quarters evidence of atrocities, massacres 
and cold-blooded mass executions which are being perpetrated by 
the Hitlerite forces in many of the countries they have overrun and 
from which they are now being steadily expelled. The brutalities of 
Hitlerite domination are no new thing and all peoples or territories 
in their grip have suffered from the worst form of Government by 
terror. What is new is that many of these territories are now being 
redeemed by the advancing armies of the liberating Powers and that, 
in their desperation, the recoiling Hitlerite Huns are redoubling 
their ruthless cruelties. This is now evidenced with particular clear- 
ness by the monstrous crimes of the Hitlerites on the territory of the 
Soviet Union which is being liberated from the Hitlerites, and on 
French and Italian territory. 

Accordingly the aforesaid three Allied Powers, speaking in the 
interests of the 32 United Nations, hereby solemnly declare and give 
full warning of their declaration as follows: At the time of the 
granting of any armistice to any Government which may be set up 
in Germany, those German officers and men and members of the 
Nazi party who have been responsible for or have taken a consenting 
part in the above atrocities, massacres and executions will be sent 
back to the countries in which their abominable deeds were done in 
order that they may be judged and punished according to the laws of 
those liberated countries and of the Free Governments which will be 
erected therein. Lists will be compiled in all possible detail from all 

'5 



FIRST MOSCOW CONFERENCE 



these countries having regard especially to the invaded parts of the 
Soviet Union, to Poland and Czechoslovakia, to Yugoslavia and 
Greece including Crete and other islands, to Norway, Denmark, the 
Netherlands, Belgium, Luxemburg, France and Italy. 

Thus Germans who take part in wholesale shootings of Polish 
officers or in the execution of French, Dutch, Belgian or Norwegian 
hostages or of Cretan peasants, or who have shared in the slaughters 
inflicted on the people of Poland or in the territories of the Soviet 
Union which are now being swept clear of the enemy, will know that 
they will be brought back to the scene of their crimes and judged on 
the spot by the peoples whom they have outraged. Let those who 
have hitherto not imbrued their hands with innocent blood beware 
lest they join the ranks of the guilty, for most assuredly the three 
Allied Powers will pursue them to the uttermost ends of the earth 
and will deliver them to the accusers in order that justice may be 
done. 

The above declaration is without prejudice to the case of German 
criminals, whose offences have no particular geographical location 
and who will be punished by a joint decision of the Governments of 
the Allies. 



AGREEMENT FOR UNITED NATIONS RELIEF AND 
REHABILITATION ADMINISTRATION 1 

Washington, November 9, 1943 

[CONSTITUTION] 

The Governments or Authorities whose duly authorized repre- 
sentatives have subscribed hereto, 

Being United Nations or being associated with the United Nations 
in this war, 

Being determined that immediately upon the liberation of any 
area by the armed forces of the United Nations or as a consequence 
of retreat of the enemy the population thereof shall receive aid and 
relief from their sufferings, food, clothing and shelter, aid in the pre- 
vention of pestilence and in the recovery of the health of the people, 
and that preparation and arrangements shall be made for the return 
of prisoners and exiles to their homes and for assistance in the re- 
sumption of urgently needed agricultural and industrial production 
and the restoration of essential services, 

Have agreed as follows: 
1 Gmd. 6491. 

16 



UNRRA CONSTITUTION 

Article i 

There is hereby established the United Nations Relief and Re- 
habilitation Administration. 

1. The Administration shall have power to acquire, hold and 
convey property, to enter into contracts and undertake obligations, 
to designate or create agencies and to review the activities of agencies 
so created, to manage undertakings and in general to perform any 
legal act appropriate to its objects and purposes. 

2. Subject to the provisions of article VII, the purposes and func- 
tions of the Administration shall be as follows: 

(a) To plan, co-ordinate, administer or arrange for the adminis- 
tration of measures for the relief of victims of war in any area 
under the control of any of the United Nations through the 
provision of food, fuel, clothing, shelter and other basic 
necessities, medical and other essential services; and to 
facilitate in such areas, so far as necessary to the adequate 
provision of relief, the production and transportation of these 
articles and the furnishing of these services. The form of 
activities of the Administration within the territory of a 
member Government wherein that Government exercises 
administrative authority and the responsibility to be assumed 
by the member Government for carrying out measures 
planned by the Administration therein shall be determined 
after consultation with and with the consent of the member 
Government. 

(b) To formulate and recommend measures for individual or 
joint action by any or all of the member Governments for the 
co-ordination of purchasing, the use of ships and other pro- 
curement activities in the period following the cessation of 
hostilities, with a view to integrating the plans and activities 
of the Administration with the total movement of supplies, 
and for the purpose of achieving an equitable distribution of 
available supplies. The Administration may administer such 
co-ordination measures as may be authorized by the member 
Governments concerned. 

(c) To study, formulate and recommend for individual or joint 
action by any or all of the member Governments measures 
with respect to such related matters, arising out of its ex- 
perience in planning and performing the work of relief and 
rehabilitation, as may be proposed by any of the member 
Governments. Such proposals shall be studied and recom- 
mendations formulated if the proposals are supported by a vote 
of the Council, and the recommendations shall be referred to 



UNRRA CONSTITUTION 

any or all of the member Governments for individual or joint 
action if approved by unanimous vote of the Central Com- 
mittee and by vote of the Council. 

Article 2 

MEMBERSHIP 

The members of the United Nations Relief and Rehabilitation 
Administration shall be the Governments or Authorities signatory 
hereto and such other Governments or Authorities as may upon 
application for membership be admitted thereto by action of the 
Council. The Council may, if it desires, authorize the Central 
Committee to accept new members between sessions of the Council. 

Wherever the term "member Government" is used in this agree- 
ment it shall be construed to mean a member of the Administration, 
whether a Government or an authority. 

Article 3 

THE COUNCIL 

1 . Each member Government shall name one representative, and 
such alternates as may be necessary, upon the Council of the United 
Nations Relief and Rehabilitation Administration, which shall be 
the policy-making body of the Administration. The Council shall, 
for each of its sessions, select one of its members to preside at the 
session. The Council shall determine its own rules of procedure. 
Unless otherwise provided by the agreement or by action of the 
Council, the Council shall vote by simple majority. 

2. The Council shall be convened in regular session not less than 
twice a year by the Central Committee. It may be convened in 
special session whenever the Central Committee shall deem neces- 
sary, and shall be convened within thirty days after request therefore 
by one-third of the members of the Council. 

3. The Central Committee of the Council shall consist of the re- 
presentatives of China, the Union of Soviet Socialist Republics, the 
United Kingdom and the United States of America, with the Direc- 
tor-General presiding without vote. Between sessions of the Council 
it shall when necessary make policy decisions of an emergency 
nature. All such decisions shall be recorded in the minutes of the 
Central Committee which shall be communicated promptly to each 
member Government. Such decisions shall be open to reconsidera- 
tion by the Council at any regular session or at any special session 
called in accordance with article III, paragraph 2. The Central 
Committee shall invite the participation of the representative of 
any member Government at those of its meetings at which action of 

18 



UNRRA CONSTITUTION 

special interest to such Government is discussed. It shall invite the 
participation of the representative serving as chairman of the Com- 
mittee on Supplies of the Council at those of its meetings at which 
policies affecting the provision of supplies are discussed. 

4. The Committee on Supplies of the Council shall consist of the 
members of the Council, or their alternates, representing those 
member Governments likely to be principal suppliers of materials 
for relief and rehabilitation. The members shall be appointed by the 
Council, and the Council may authorize the Central Committee to 
make emergency appointments between sessions of the Council, such 
appointments to continue until the next session of the Council. The 
Committee on Supplies shall consider, formulate and recommend to 
the Council and the Central Committee policies designed to assure 
the provision of required supplies. The Central Committee shall 
from time to time meet with the Committee on Supplies to review 
policy matters affecting supplies. 

5. The Committee of the Council for Europe shall consist of all 
the members of the Council, or their alternates, representing mem- 
ber Governments of territories within the European area, and such 
other members of the Council, representing other Governments 
directly concerned with the problems of relief and rehabilitation in 
the European area, as shall be appointed by the Council; the Coun- 
cil may authorize the Central Committee to make these appoint- 
ments in cases of emergency between sessions of the Council, such 
appointments to continue until the next session of the Council. The 
Committee of the Council for the Far East shall consist of all the 
members of the Council, or their alternates representing member 
Governments of territories within the Far Eastern area, and such 
other members of the Council representing other Governments 
directly concerned with the problems of relief and rehabilitation in 
the Far Eastern area as shall be appointed by the Council; the 
Council may authorize the Central Committee to make these 
appointments in cases of emergency between sessions of the Council, 
such appointments to continue until the next session of the Council. 
The regional committees shall normally meet within their respective 
areas. They shall consider and recommend to the Council and the 
Central Committee policies with respect to relief and rehabilitation 
within their respective areas. The Committee of the Council for 
Europe shall replace the Inter-Allied Committee on European post- 
war relief established in London on September 24, 1941, and the 
records of the latter shall be made available to the committee for 
Europe. 

6. The Council shall establish such other standing regional com- 
mittees as it shall consider desirable, the functions of such committees 

'9 



UNRRA CONSTITUTION 

and the method of appointing their members being identical to that 
provided in article III, paragraph 5, with respect to the committees 
of the Council for Europe and for the Far East. The Council shall 
also establish such other standing committees as it considers desirable 
to advise it, and, in intervals between sessions of the Council, to 
advise the Central Committee. For such standing technical com- 
mittees as may be established, in respect of particular problems such 
as nutrition, health, agriculture, transport, repatriation and finance, 
the members may be members of the Council or alternates nominated 
by them because of special competence in their respective fields of 
work. The members shall be appointed by the Council, and the 
Council may authorize the Central Committee to make emergency 
appointments between sessions of the Council, such appointments to 
continue until the next session of the Council. Should a regional com- 
mittee so desire, sub-committees of the standing technical commit- 
tees shall be established by the technical committees in consultation 
with the regional committees, to advise the regional committees. 

7. The travel and other expenses of members of the Council and 
of members of its committees shall be borne by the Governments 
which they represent. 

8. All reports and recommendations of committees of the Council 
shall be transmitted to the Director-General for distribution to the 
Council and the Central Committee by the secretariat of the Council 
established under the provisions of article IV, paragraph 4. 

Article 4 

THE DIRECTOR-GENERAL 

1. The executive authority of the United Nations Relief and 
Rehabilitation Administration shall be in the Director-General, who 
shall be appointed by the Council on the nomination by unanimous 
vote of the Central Committee. The Director-General may be re- 
moved by the Council on recommendation, by unanimous vote, of 
the Central Committee. 

2. The Director-General shall have full power and authority for 
carrying out relief operations contemplated by article I, paragraph 
2 (0), within the limits of available resources and the broad policies 
determined by the Council or its Central Committee. Immediately 
upon taking office he shall, in conjunction with the military and 
other appropriate authorities of the United Nations, prepare plans 
for the emergency relief of the civilian population in any area occu- 
pied by the armed forces of any of the United Nations, arrange for 
the procurement and assembly of the necessary supplies and create 
or select ne emergency organization required for this purpose. In 

20 



UNRRA CONSTITUTION 

arranging for the procurement, transportation and distribution of 
supplies and services, he and his representatives shall consult and 
collaborate with the appropriate authorities of the United Nations 
and shall, wherever practicable, use the facilities made available by 
such authorities. Foreign voluntary relief agencies may not engage in 
activity in any area receiving relief from the Administration without 
the consent and unless subject to the regulation of the Director- 
General. The powers and duties of the Director-General are subject 
to the limitations of article VII. 

3. The Director-General shall also be responsible for the organiza- 
tion and direction of the functions contemplated by article I, para- 
graphs 2 (b) and 2 (c). 

4. The Director-General shall appoint such Deputy Directors- 
General, officers, expert personnel, and staff at his headquarters 
and elsewhere, including field missions, as he shall find necessary, 
and he may delegate to them such of his powers as he may deem 
appropriate. The Director-General, or upon his authorization the 
Deputy Directors-General, shall supply such secretariat and other 
staff and facilities as shall be required by the Council and its com- 
mittees, including the regional committees and sub-committees. 
Such Deputy Directors-General as shall be assigned special func- 
tions within a region shall attend meetings of the regional standing 
committee whenever possible and shall keep it advised on the pro- 
gress of the relief and rehabilitation programme within the region. 

5. The Director-General shall make periodic reports to the Central 
Committee and to the Council covering the progress of the Ad- 
ministration's activities. The reports shall be made public except for 
such portions as the Central Committee may consider it necessary, 
in the interest of the United Nations, to keep confidential; if a report 
affects the interests of a member Government in such a way as to 
render it questionable whether it should be published, such Govern- 
ment shall have an opportunity of expressing its views on the ques- 
tion of publication. The Director-General shall also arrange to have 
prepared periodic reports covering the activities of the Administra- 
tion within each region and he shall transmit such reports with his 
comments thereon to the Council, the Central Committee and the 
respective regional committees. 

Article 5 

SUPPLIES AND RESOURCES 

I . In so far as its appropriate constitutional bodies shall authorize, 
each member Government will contribute to the support of the 
Administration in order to accomplish the purposes of article I, 
paragraph 2 (a). The amount and character of the contributions of 

21 



UNRRA CONSTITUTION 

each member Government under this provision will be determined 
from time to time by its appropriate constitutional bodies. All such 
contributions received by the Administration shall be accounted for. 

2. The supplies and resources made available by the member 
Governments shall be kept in review in relation to prospective re- 
quirements by the Director-General, who shall initiate action with 
the member Governments with a view to assuring such additional 
supplies and resources as may be required. 

3. All purchases by any of the member Governments, to be made 
outside their own territories during the war for relief or rehabilita- 
tion purposes, shall be made only after consultation with the 
Director-General, and shall, so far as practicable, be carried out 
through the appropriate United Nations agency. 

Article 6 

ADMINISTRATIVE EXPENSES 

The Director-General shall submit to the Council an annual 
budget, and from time to time such supplementary budgets as may 
be required, covering the necessary administrative expenses of the 
Administration. Upon approval of a budget by the Council the total 
amount approved shall be allocated to the member Governments in 
proportions to be determined by the Council. Each member Govern- 
ment undertakes, subject to the requirements of its constitutional 
procedure, to contribute to the Administration promptly its share 
of the administrative expenses so determined. 

Article 7 

Notwithstanding any other provision herein contained, while 
hostilities or other military necessities exist in any area, the Adminis- 
tration and its Director-General shall not undertake activities therein 
without the consent of the military command of that area, and unless 
subject to such control as the command may find necessary. The 
determination that such hostities or military necessities exist in any 
area shall be made by its military commander. 

Article 8 

AMENDMENT 

The provisions of this agreement may be amended as follows: 

(a) Amendments involving new obligations for member Govern- 
ments shall require the approval of the Council by a two- 
thirds vote and shall take effect for each member Govern- 
ment on acceptance by it; 

22 



UNRRA CONSTITUTION 

(b) Amendments involving modification of article III or article 
IV shall take effect on adoption by the Council by a two- 
thirds vote, including the votes of all the members of the 
Central Committee; 

(c) Other amendments shall take effect on adoption by the Coun- 
cil by a two- thirds vote. 

Article p 

ENTRY INTO FORGE 

This agreement shall enter into force with respect to each sig- 
natory on the date when the agreement is signed by that signatory, 
unless otherwise specified by such signatory. 

Article 10 

WITHDRAWAL 

Any member Government may give notice of withdrawal from the 
Administration at any time after the expiration of six months from 
the entry into force of the agreement for that Government. Such 
notice shall take effect twelve months after the date of its communica- 
tion to the Director-General subject to the member Government 
having met by that time all financial, supply or other material 
obligations accepted or undertaken by it. 

In witness whereof, this agreement is signed by the following 
representatives, duly authorized for that purpose by their respective 
Governments or Authorities. 

Done in Washington this ninth day of November, one thousand 
nine hundred forty-three, in the English language, the original to be 
deposited in the archives of the Department of State of the United 
States of America, and certified copies thereof to be furnished by the 
Government of the United States of America to each of the Govern- 
ments and Authorities on whose behalf this agreement is signed. 

[Here follow the signatures of the representatives of: Australia, 
Belgium, Bolivia, Brazil, Canada, Chile, 1 China, Colombia, 1 Costa 
Rica, Cuba, 1 Czechoslovakia, Dominican Republic, Ecuador, 1 
Egypt, El Salvador, Ethiopia, 1 French Committee of National 
Liberation, Greece, Guatemala, 1 Hayti, Honduras, Iceland, India, 1 
Iran, 1 Iraq, 1 Liberia, Luxemburg, Mexico, 1 Netherlands, New Zea- 
land, Nicaragua, 1 Norway, Panama, Paraguay, Peru, 1 Philippine 
Commonwealth, Poland, Union of South Africa, Union of Soviet 
Socialist Republics, United Kingdom of Great Britain and Northern 
Ireland, United States of America, Uruguay, 1 Venezuela 1 and 
Yugoslavia.] 

1 Signed subject to ratification or legislative approval. 

23 



TEHERAN DECLARATION 1 

December i, 1943 

We, The President of the United States of America, the Prime 
Minister of Great Britain and the Premier of the Soviet Union have 
met these four days past in this the capital of our ally Iran and have 
shaped and confirmed our common policy. 

We expressed our determination that our Nations shall work 
together in war and in the peace that will follow. 

As to war our Military Staffs have joined in our Round Table 
discussions and we have concerted our plans for the destruction of 
the German forces. We have reached complete agreement as to the 
scope and timing of the operations which will be undertaken from 
the east, west, and south. 

The common understanding which we have here reached guaran- 
tees that victory will be ours. 

And as to peace we are sure that our concord will make it an 
enduring peace. We recognize fully the supreme responsibility 
resting upon us and all the United Nations to make a peace which 
will command the good will of the overwhelming masses of the 
peoples of the world and banish the scourge and terror of war for 
many generations. 

With our Diplomatic advisers we have surveyed the problems of 
the future. We shall seek the co-operation and the active participa- 
tion of all nations large and small whose peoples in heart and mind 
are dedicated as are our own peoples to the elimination of tyranny 
and slavery, oppression and intolerance. We will welcome them as 
they may choose to come into a world family of Democratic Nations. 

No power on earth can prevent our destroying the German armies 
by land, their U-boats by sea and their war plants from the air. Our 
attacks will be relentless and increasing. 

From these friendly conferences we look with confidence to the 
day when all peoples of the world may live free lives untouched by 
tyranny and according to their varying desires and their own con- 
sciences. 

We came here with hope and determination. We leave here 
friends in fact, in spirit and in purpose. 

SIGNED AT TEHERAN DECEMBER i, 1943 

ROOSEVELT 

STALIN 

CHURCHILL 

1 Ministry of Information Press Release, December 6, 1943. 

24 



CAIRO COMMUNIQUE 1 

December i, 1943 

President Roosevelt, Generalissimo Chiang Kai-shek, and the 
Prime Minister, Mr Churchill, together with their respective 
military and diplomatic advisers, have completed a conference in 
North Africa. The following general statement has been issued: 

"The several military missions have agreed upon future military 
operations against Japan. 

"The three great allies expressed their resolve to bring unrelent- 
ing pressure against their brutal enemies by sea, land, and air. 
This pressure is already rising. 

"The three great allies are fighting this war to restrain and 
punish the aggression of Japan. They covet no gain for themselves, 
and have no thought of territorial expansion. 

"It is their purpose that Japan shall be stripped of all the islands 
in the Pacific which she has seized or occupied since the beginning 
of the first world war in 1914, and that all the territories that 
Japan has stolen from the Chinese, such as Manchuria, Formosa, 
and the Pescadores, shall be restored to the Republic of China. 

"Japan will also be expelled from all other territories which she 
has taken by violence and greed. 

"The aforesaid three Great Powers, mindful of the enslavement 
of the people of Korea, are determined that in due course Korea 
shall become free and independent. 

"With these objectives in view the three allies, in harmony 
with those of the United Nations at war with Japan, will con- 
tinue to persevere in the serious and prolonged operations neces- 
sary to procure the unconditional surrender of Japan." 



DECLARATION ADOPTED BY THE INTERNATIONAL 

LABOUR CONFERENCE AT ITS TWENTY-SIXTH 

SESSION 2 

Philadelphia, April May 1944 

DECLARATION CONCERNING THE AIMS AND PURPOSES OF THE 
INTERNATIONAL LABOUR ORGANIZATION 

The General Conference of the International Labour Organiza- 
tion, meeting in its Twenty-sixth Session in Philadelphia, hereby 
adopts, this tenth day of May in the year nineteen hundred and 

1 The Times, December 2, 1943. 

1 International Labour Office, Official Bulletin, June I, 1944. 

25 



PHILADELPHIA CHARTER 

forty-four, the present Declaration of the aims and purposes of the 
International Labour Organization and of the principles which 
should inspire the policy of its Members. 

I 

The Conference reaffirms the fundamental principles on which 
the Organization is based and, in particular, that: 

(a) labour is not a commodity; 

(b) freedom of expression and of association are essential to 
sustained progress; 

(c) poverty anywhere constitutes a danger to prosperity every- 
where; 

(d) the war against want requires to be carried on with unrelent- 
ing vigour within each nation, and by continuous and concerted 
international effort in which the representatives of workers and em- 
ployers, enjoying equal status with those of Governments, join with 
them in free discussion and democratic decision with a view to the 
promotion of the common welfare. 

II 

Believing that experience has fully demonstrated the truth of the 
statement in the Constitution of the International Labour Organiza- 
tion that lasting peace can be established only if it is based on social 
justice, the Conference affirms that: 

(a) all human beings, irrespective of race, creed or sex, have the 
right to pursue both their material well-being and their spiritual 
development in conditions of freedom and dignity, of economic 
security and equal opportunity; 

(b) the attainment of the conditions in which this shall be pos- 
sible must constitute the central aim of national and international 
policy; 

(c) all national and international policies and measures, in par- 
ticular those of an economic and financial character, should be 
judged in this light and accepted only in so far as they may be held 
to promote and not to hinder the achievement of this fundamental 
objective; 

(d) it is a responsibility of the International Labour Organization 
to examine and consider all international economic and financial 
policies and measures in the light of this fundamental objective; 

(e) in discharging the tasks entrusted to it the International 
Labour Organization, having considered all relevant economic and 
financial factors, may include in its decisions and recommendations 
any provisions which it considers appropriate. 

26 



PHILADELPHIA CHARTER 
III 

The Conference recognizes the solemn obligation of the Inter- 
national Labour Organization to further among the nations of the 
world programmes which will achieve: 

(a) full employment and the raising of standards of living; 

(b) the employment of workers in the occupations in which they 
can have the satisfaction of giving the fullest measure of their skill 
and attainments and make their greatest contribution to the com- 
mon well-being; 

(c) the provision, as a means to the attainment of this end and 
under adequate guarantees for all concerned, of facilities for training 
and the transfer of labour, including migration for employment and 
settlement; 

(d) policies in regard to wages and earnings, hours and other con- 
ditions of work calculated to ensure a just share of the fruits of pro- 
gress to all, and a minimum living wage to all employed and in need 
of such protection; 

(e) the effective recognition of the right of collective bargaining, 
the co-operation of management and labour in the continuous im- 
provement of productive efficiency, and the collaboration of workers 
and employers in the preparation and application of social and 
economic measures; 

(f) the extension of social security measures to provide a basic 
income to all in need of such protection and comprehensive medical 
care; 

(g) adequate protection for the life and health of workers in all 
occupations; 

(h) provision for child welfare and maternity protection; 

(i) the provision of adequate nutrition, housing and facilities for 
recreation and culture; 

(j) the assurance of equality of educational and vocational oppor- 
tunity. 

IV 

Confident that the fuller and broader utilization of the world's 
productive resources necessary for the achievement of the objectives 
set forth in this Declaration can be secured by effective international 
and national action, including measures to expand production and 
consumption, to avoid severe economic fluctuations, to promote the 
economic and social advancement of the less developed regions of 
the world, to assure greater stability in world prices of primary pro- 
ducts, and to promote a high and steady volume of international 
trade, the Conference pledges the full cc-cperalior of the Inter- 
national Labour Organization with such international bodies as 

27 



PHILADELPHIA CHARTER 

may be entrusted with a share cf the responsibility for this great 
task and for the promotion of the health, education and well-being 
of all peoples. 

V 

The Conference affirms that the principles set forth in this 
Declaration are fully applicable to all peoples everywhere and that, 
while the manner of their application must be determined with due 
regard to the stage of social and economic development reached by 
each people, their progressive application to peoples who are still 
dependent, as well as to those who have already achieved self- 
government, is a matter of concern to the whole civilized world. 



UNITED NATIONS MONETARY AND FINANCIAL 
CONFERENCE 1 

Bretton Woods, New Hampshire, July i July 22, 1944 

The Governments of Australia, Belgium, Bolivia, Brazil, Canada, 
Chile, China, Colombia, Costa Rica, Cuba, Czechoslovakia, Domi- 
nican Republic, Ecuador, Egypt, El Salvador, Ethiopia; the French 
Delegation; the Governments of Greece, Guatemala, Haiti, Hon- 
duras, Iceland, India, Iran, Iraq, Liberia, Luxembourg, Mexico, 
Netherlands, New Zealand, Nicaragua, Norway, Panama, Para- 
guay, Peru, Philippine Commonwealth, Poland, Union of South 
Africa, Union of Soviet Socialist Republics, United Kingdom, 
United States of America, Uruguay, Venezuela, and Yugoslavia 
were represented. 

[Here follows a list of delegates and commissions, and of resolutions, 
statements and recommendations, the more important of which appear below.] 

IV 

STATEMENT REGARDING SILVER 

The problems confronting some nations as a result of the wide 
fluctuation in the value of silver were the subject of serious discussion 
in Commission III. Due to the shortage of time, the magnitude of the 
other problems on the agenda, and other limiting considerations, it 
was impossible to give sufficient attention to this problem at this 
time in order to make definite recommendations. However, it was the 
sense of Commission III that the subject should merit further study 
by the interested nations. 

1 Cmd. 6546. 

28 



BRETTON WOODS 
V 

LIQUIDATION OF THE BANK FOR INTERNATIONAL SETTLEMENTS 

The United Nations Monetary and Financial Conference 

RECOMMENDS: 

The liquidation of the Bank for International Settlements at the 
earliest possible moment. 

VII 

INTERNATIONAL ECONOMIC PROBLEMS 

Whereas, in Article I of the Articles of Agreement of the Inter- 
national Monetary Fund it is stated that one of the principal pur- 
poses of the Fund is to facilitate the expansion and balanced growth 
of international trade, and to contribute thereby to the promotion 
and maintenance of high levels of employment and real income and 
to the development of the productive resources of all members as 
primary objectives of economic policy; 

Whereas, it is recognized that the complete attainment of this and 
other purposes and objectives stated in the Agreement cannot be 
achieved through the instrumentality of the Fund alone; therefore 

The United Nations Monetary and Financial Conference 

RECOMMENDS: 

To the participating Governments that, in addition to implement- 
ing the specific monetary and financial measures which were the 
subject of this Conference, they seek, with a view to creating in the 
field of international economic relations conditions necessary for the 
attainment of the purposes of the Fund and of the broader primary 
objectives of economic policy, to reach agreement as soon as possible 
on ways and means whereby they may best: 

(1) reduce obstacles to international trade and in other ways 
promote mutually advantageous international commercial re- 
lations; 

(2) bring about the orderly marketing of staple commodities at 
prices fair to the producer and consumer alike; 

(3) deal with the special problems of international concern 
which will arise from the cessation of production for war purposes; 
and 

(4) facilitate by co-operative effort the harmonization of nation- 
al policies of Member States designed to promote and maintain 
high levels of employment and progressively rising standards of 
living. 

29 



BRETTON WOODS 

ANNEX A 

ARTICLES OF AGREEMENT OF THE INTERNATIONAL MONETARY FUND 

The Governments on whose behalf the present Agreement is 
signed agree as follows: 

INTRODUCTORY ARTICLE 

The International Monetary Fund is established and shall operate 
in accordance with the following provisions: 

Article I 

PURPOSES 

The purposes of the International Monetary Fund are: 

(i) To promote international monetary co-operation through a 
permanent institution which provides the machinery for con- 
sultation and collaboration on international monetary prob- 
lems. 

(ii) To facilitate the expansion and balanced growth of inter- 
national trade, and to contribute thereby to the promotion 
and maintenance of high levels of employment and real in- 
come and to the development of the productive resources of 
all members as primary objectives of economic policy. 

(iii) To promote exchange stability, to maintain orderly exchange 
arrangements among members, and to avoid competitive 
exchange depreciation. 

(iv) To assist in the establishment of a multilateral system of pay- 
ments in respect of current transactions between members 
and in the elimination of foreign exchange restrictions which 
hamper the growth of world trade. 

(v) To give confidence to members by making the Fund's re- 
sources available to them under adequate safeguards, thus 
providing them with opportunity to correct maladjustments 
in their balance of payments without resorting to measures 
destructive of national or international prosperity. 

(vi) In accordance with the above, to shorten the duration and 
lessen the degree of disequilibrium in the international 
balances of payments of members. 

The Fund shall be guided in all its decisions by the purposes set forth 
in this Article. 



BRETTON WOODS 

Article II 

MEMBERSHIP 

Section i . Original members 

The original members of the Fund shall be those of the countries 
represented at the United Nations Monetary and Financial Con- 
ference whose governments accept membership before the date 
specified in Article XX, Section 2(0). 

Section 2. Other members 

Membership shall be open to the governments of other countries 
at such times and in accordance with such terms as may be prescribed 
by the Fund. 

Article III 

QUOTAS AND SUBSCRIPTIONS 

Section i. Quotas 

Each member shall be assigned a quota. The quotas of the mem- 
bers represented at the United Nations Monetary and Financial 
Conference which accept membership before the date specified in 
Article XX, Section 2(0), shall be those set forth in Schedule A. The 
quotas of other members shall be determined by the Fund. 

Section 2. Adjustment of quotas 

The Fund shall at intervals of five years review, and if it deems 
it appropriate propose an adjustment of, the quotas of the members. 
It may also, if it thinks fit, consider at any other time the adjustment 
of any particular quota at the request of the member concerned. A 
four-fifths majority of the total voting power shall be required for 
any change in quotas and no quota shall be changed without the 
consent of the member concerned. 

Section 3. Subscriptions: Time, place and form of payment 

(a) The subscription of each member shall be equal to its quota 
and shall be paid in full to the Fund at the appropriate depository on 
or before the date when the member becomes eligible under Article 
XX, Section ^(c) or (d) 9 to buy currencies from the Fund. 

(b) Each member shall pay in gold, as a minimum, the smaller of 

(i) twenty-five per cent of its quota; or 

(ii) ten per cent of its net official holdings of gold and United 
States dollars as at the date when the Fund notifies members 
under Article XX, Section 4(0) that it will shortly be in a 
position to begin exchange transactions. 

3 1 



BRETTON WOODS 

Each member shall furnish to the Fund the data necessary to deter- 
mine its net official holdings of gold and United States dollars. 

(c) Each member shall pay the balance of its quota in its own 
currency. 

(d) If the net official holdings of gold and United States dollars of 
any member as at the date referred in (b) (ii) above are not ascer- 
tainable because its territories have been occupied by the enemy, the 
Fund shall fix an appropriate alternative date for determining such 
holdings. If such date is later than that on which the country be- 
comes eligible under Article XX, Section 4 (c) or (d), to buy cur- 
rencies from the Fund, the Fund and the member shall agree on a 
provisional gold payment to be made under (b) above, and the 
balance of the member's subscription shall be paid in the member's 
currency, subject to appropriate adjustment between the member 
and the Fund when the net official holdings have been ascertained. 

Section 4. Payments when quotas are changed 

(a) Each member which consents to an increase in its quota shall, 
within thirty days after the date of its consent, pay to the Fund 
twenty-five per cent of the increase in gold and the balance in its own 
currency. If, however, on the date when the member consents to an 
increase, its monetary reserves are less than its new quota, the Fund 
may reduce the proportion of the increase to be paid in gold. 

(b) If a member consents to a reduction in its quota, the Fund 
shall, within thirty days after the date of the consent, pay to the 
member an amount equal to the reduction. The payment shall be 
made in the member's currency and in such amount of gold as may 
be necessary to prevent reducing the Fund's holdings of the cur- 
rency below seventy-five per cent of the new quota. 

Section 5. Substitution of securities for currency 

The Fund shall accept from any member in place of any part of 
the member's currency which in the judgement of the Fund is not 
needed for its operations, notes or similar obligations issued by the 
member or the depository designated by the member under Article 
XIII, Section 2, which shall be non-negotiable, non-interest bearing 
and payable at their par value on demand by crediting the account 
of the Fund in the designated depository. This Section shall apply 
not only to currency subscribed by members but also to any cur- 
rency otherwise due to, or acquired by, the Fund. 



BRETTON WOODS 

Article IV 

PAR VALUES OF CURRENCIES 

Section I . Expression of par values 

(a) The par value of the currency of each member shall be ex- 
pressed in terms of gold as a common denominator or in terms of the 
United States dollar of the weight and fineness in effect on July i, 

1944- 

(b) All computations relating to currencies of members for the 
purpose of applying the provisions of this Agreement shall be on the 
basis of their par values. 

Section 2. Gold purchases based on par values 

The Fund shall prescribe a margin above and below par value for 
transactions in gold by members, and no member shall buy gold at a 
price above par value plus the prescribed margin, or sell gold at a 
price below par value minus the prescribed margin. 

Section 3. Foreign exchange dealings based on parity 

The maximum and the minimum rates for exchange transactions 
between the currencies of members taking place within their ter- 
ritories shall not differ from parity 

(i) in the case of spot exchange transactions, by more than one 

per cent; and 
(ii) in the case of other exchange transactions, by a margin which 

exceeds the margin for spot exchange transactions by more 

than the Fund considers reasonable. 

Section 4. Obligations regarding exchange stability 

(a) Each member undertakes to collaborate with the Fund to pro- 
mote exchange stability, to maintain orderly exchange arrangements 
with other members, and to avoid competitive exchange alterations. 

(b) Each member undertakes, through appropriate measures con- 
sistent with this Agreement, to permit within its territories exchange 
transactions between its currency and the currencies of other mem- 
bers only within the limits prescribed under Section 3 of this Article. 
A member whose monetary authorities, for the settlement of inter- 
national transactions, in fact freely buy and sell gold within the limits 
prescribed by the Fund under Section 2 of this Article shall be deem- 
ed to be fulfilling this undertaking. 

Section 5. Changes in par values 

(a) A member shall not propose a change in the par value of its 
currency except to correct a fundamental disequilibrium. 

c 33 



BRETTON WOODS 

(6) A change in the par value of a member's currency may be 
made only on the proposal of the member and only after consulta- 
tion with the Fund. 

(c) When a change is proposed, the Fund shall first take into ac- 
count the changes, if any, which have already taken place in the 
initial par value of the member's currency as determined under 
Article XX, Section 4. If the proposed change, together with all 
previous changes, whether increases or decreases, 

(i) does not exceed ten per cent of the initial par value, the Fund 

shall raise no objection, 
(ii) does not exceed a further ten per cent of the initial par value, 

the Fund may either concur or object, but shall declare its 

attitude within seventy- two hours if the member so requests, 
(iii) is not within (i) or (ii) above, the Fund may either concur or 

object, but shall be entitled to a longer period in which to 

declare its attitude. 

(d ) Uniform changes in par values made under Section 7 of this 
Article shall not be taken into account in determining whether a 
proposed change falls within (i), (ii), or (iii) of (c) above. 

(e) A member may change the par value of its currency without 
the concurrence of the Fund if the change does not affect the inter- 
national transactions of members of the Fund. 

(J) The Fund shall concur in a proposed change which is within 
the terms of (c) (ii) or (c) (iii) above if it is satisfied that the change is 
necessary to correct a fundamental disequilibrium. In particular, 
provided it is so satisfied, it shall not object to a proposed change 
because of the domestic social or political policies of the member 
proposing the change. 

Section 6. Effect of unauthorized changes 

If a member changes the par value of its currency despite the ob- 
jection of the Fund, in cases where the Fund is entitled to object, 
the member shall be ineligible to use the resources of the Fund unless 
the Fund otherwise determines; and if, after the expiration of a 
reasonable period, the difference between the member and the Fund 
continues, the matter shall be subject to the provisions of Article XV, 
Section 2 (b). 

Section 7. Uniform changes in par values 

Notwithstanding the provisions of Section 5 (b) of this Article, the 
Fund by a majority of the total voting power may make uniform 
proportionate changes in the par values of the currencies of all mem- 
bers, provided each such change is approved by every member which 

34 



BRETtON WOODS 

has 10 per cent or more of the total of the quotas. The par value of a 
member's currency shall, however, not be changed under this pro- 
vision if, within seventy-two hours of the Fund's action, the member 
informs the Fund that it does not wish the par value of its currency 
to be changed by such action. 

Section 8. Maintenance of gold value of the Fund's assets 

(a) The gold value of the Fund's assets shall be maintained not- 
withstanding changes in the par or foreign exchange value of the 
currency of any member. 

(b) Whenever (i) the par value of a member's currency is reduced, 
or (ii) the foreign exchange value of a member's currency has, in the 
opinion of the Fund, depreciated to a significant extent within that 
member's territories, the member shall pay to the Fund within a 
reasonable time an amount of its own currency equal to the reduc- 
tion in the gold value of its currency held by the Fund. 

(c) Whenever the par value of a member's currency is increased, 
the Fund shall return to such member within a reasonable time an 
amount in its currency equal to the increase in the gold value of its 
currency held by the Fund. 

(d) The provisions of this Section shall apply to a uniform propor- 
tionate change in the par values of the currencies of all members, 
unless at the time when such a change is proposed the Fund decides 
otherwise. 

Section 9. Separate currencies within a member's territories 

A member proposing a change in the par value of its currency 
shall be deemed, unless it declares otherwise, to be proposing a 
corresponding change in the par value of the separate currencies of 
all territories in respect of which it has accepted this agreement 
under Article XX, Section 2 (g). It shall, however, be open to a 
member to declare that its proposal relates either to the metro- 
politan currency alone, or only to one or more specified separate 
currencies, or to the metropolitan currency and one or more specified 
separate currencies. 

Article V 

TRANSACTIONS WITH THE FUND 

Section i . Agencies dealing with the Fund 

Each member shall deal with the Fund only through its Treasury, 
central bank, stabilization fund or other similar fiscal agency and 
the Fund shall deal only with or through the same agencies. 

Section 2. Limitation on the Fund's operations 

Except as otherwise provided in this Agreement, operations on the 

35 



BRETTON WOODS 

account of the Fund shall be limited to transactions for the purpose 
of supplying a member, on the initiative of such member, with the 
currency of another member in exchange for gold or for the currency 
of the member desiring to make the purchase. 

Section 3. Conditions governing use of the Fund's resources 

(a) A member shall be entitled to buy the currency of another 
member from the P'und in exchange for its own currency subject to 
the following conditions: 

(i) The member desiring to purchase the currency represents 
that it is presently needed for making in that currency pay- 
ments which are consistent with the provisions of this Agree- 
ment; 

(ii) The Fund has not given notice under Article VII, Section 3, 
that its holdings of the currency desired have become scarce; 

(iii) The proposed purchase would not cause the Fund's holdings 
of the purchasing member's currency to increase by more 
than twenty-five per cent of its quota during the period of 
twelve months ending on the date of the purchase nor to 
exceed two hundred per cent of its quota, but the twenty-five 
per cent limitation shall apply only to the extent that the 
Fund's holdings of the member's currency have been brought 
above seventy-five per cent of its quota if they had been below 
that amount; 

(iv) The Fund has not previously declared under Section 5 of this 
Article, Article IV, Section 6, Article VI, Section i, or Article 
XV, Section 2 (a), that the member desiring to purchase is 
ineligible to use the resources of the Fund. 

(b) A member shall not be entitled without the permission of the 
Fund to use the Fund's resources to acquire currency to hold against 
forward exchange transactions. 

Section 4. Waiver of conditions 

The Fund may in its discretion, and on terms which safeguard its 
interests, waive any of the conditions prescribed in Section 3 (a) of 
this Article, especially in the case of members with a record of avoid- 
ing large or continuous use of the Fund's resources. In making a 
waiver it shall take into consideration periodic or exceptional re- 
quirements of the member requesting the waiver. The Fund shall 
also take into consideration a member's willingness to pledge as 
collateral security gold, silver, securities, or other acceptable assets 
having a value sufficient in the opinion of the Fund to protect its 
interests and may require as a condition of waiver the pledge of such 
collateral security. 

36 



BRETTON WOODS 

Section 5. Ineligibility to use the Fund's resources 

Whenever the Fund is of the opinion that any member is using 
the resources of the Fund in a manner contrary to the purposes of the 
Fund, it shall present to the member a report setting forth the views 
of the Fund and prescribing a suitable time for reply. After present- 
ing such a report to a member, the Fund may limit the use of its 
resources by the member. If no reply to the report is received from 
the member within the prescribed time, or if the reply received is 
unsatisfactory, the Fund may continue to limit the member's use of 
the Fund's resources or may, after giving reasonable notice to the 
member, declare it ineligible to use the resources of the Fund. 
Section 6. Purchases of currencies from the Fund for gold 

(a) Any member desiring to obtain, directly or indirectly, the 
currency of another member for gold shall, provided that it can do 
so with equal advantage, acquire it by the sale of gold to the Fund. 

(b) Nothing in this Section shall be deemed to preclude any mem- 
ber from selling in any market gold newly produced from mines 
located within its territories. 

Section 7. Repurchase by a member of its currency held by the Fund 

(a) A member may repurchase from the Fund and the Fund shall 
sell for gold any part of the Fund's holdings of its currency in excess 
of its quota. 

(b) At the end of each financial year of the Fund, a member shall 
repurchase from the Fund with gold or convertible currencies, as 
determined in accordance with Schedule B, part of the Fund's 
holdings of its currency under the following conditions: 

(i) Each member shall use in repurchases of its own currency 
from the Fund an amount of its monetary reserves equal in 
value to one-half of any increase that has occurred during the 
year in the Fund's holdings of its currency plus one-half of 
any increase, or minus one-half of any decrease, that has oc- 
curred during the year in the member's monetary reserves. 
This rule shall not apply when a member's monetary reserves 
have decreased during the year by more than the Fund's 
holdings of its currency have increased. 

(ii) If after the repurchase described in (i) above (if required) has 
been made, a member's holdings of another member's cur- 
rency (or of gold acquired from that member) are found to 
have increased by reason of transactions in terms of that cur- 
rency with other members or persons in their territories, the 
member whose holdings of such currency (or gold) have thus 
increased shall use the increase to repurchase its own cur- 
rency from the Fund. 

37 



BRETTON WOODS 

(c) None of the adjustments described in () above shall be carried 
to a point at which 

(i) the member's monetary reserves are below its quota, or 
(ii) the Fund's holdings of its currency are below seventy-five 

per cent of its quota, or 

(iii) the Fund's holdings of any currency required to be used are 
above seventy-five per cent of the quota of the member 
concerned. 

Section 8. Charges 

(a) Any member buying the currency of another member from the 
Fund in exchange for its own currency shall pay a service charge 
uniform for all members of three-fourths per cent in addition to the 
parity price. The Fund in its discretion may increase this service 
charge to not more than one per cent or reduce it to not less than 
one-half per cent. 

(b) The Fund may levy a reasonable handling charge on any 
member buying gold from the Fund or selling gold to the Fund. 

(c) The Fund shall levy charges uniform for all members which 
shall be payable by any member on the average daily balances of its 
currency held by the Fund in excess of its quota. These charges shall 
be at the following rates; 

(i) On amounts not more than twenty-Jive per cent in excess of the quota: 
no charge for the first three months; one-half per cent per 
annum for the next nine months; and thereafter an increase 
in the charge of one-half per cent for each subsequent year. 

(ii) On amounts more than twenty-jive per cent and not more than fifty 
per cent in excess of the quota: an additional one-half per cent 
for the first year; and an additional one-half per cent for each 
subsequent year. 

(iii) On each additional bracket of twenty-five per cent in excess of the 
quota: an additional one-half per cent for the first year; and an 
additional one-half per cent for each subsequent year. 

(d) Whenever the Fund's holdings of a member's currency are 
such that the charge applicable to any bracket for any period has 
reached the rate of four per cent per annum, the Fund and the mem- 
ber shall consider means by which the Fund's holdings of the cur- 
rency can be reduced. Thereafter, the charges shall rise in accordance 
with the provisions of (c) above until they reach five per cent and 
failing agreement, the Fund may then impose such charges as it 
deems appropriate. 

(e) The rates referred to in (c) and (d) above may be changed by a 
three-fourths majority of the total voting power. 

38 



BRETTON WOODS 

(/) All charges shall be paid in gold. If, however, the member's 
monetary reserves are less than one-half of its quota, it shall pay in 
gold only that proportion of the charges due which such reserves 
bear to one-half of its quota, and shall pay the balance in its own 
currency. 

Article VI 

CAPITAL TRANSFERS 

Section i . Use of the Fund's resources for capital transfers 

(a) A member may not make net use of the Fund's resources to 
meet a large or sustained outflow of capital, and the Fund may re- 
quest a member to exercise controls to prevent such use of the re- 
sources of the Fund. If, after receiving such a request, a member fails 
to exercise appropriate controls, the Fund may declare the member 
ineligible to use the resources of the Fund. 

(b) Nothing in this Section shall be deemed 

(i) to prevent the use of the resources of the Fund for capital 
transactions of reasonable amount required for the expansion 
of exports or in the ordinary course of trade, banking or other 
business, or 

(ii) to affect capital movements which are met out of a member's 
own resources of gold and foreign exchange, but members 
undertake that such capital movements will be in accordance 
with the purposes of the Fund. 

Section 2. Special provisions for capital transfers 

If the Fund's holdings of the currency of a member have remained 
below seventy-five per cent of its quota for an immediately preceding 
period of not less than six months, such member, if it has not been 
declared ineligible to use the resources of the Fund under Section I 
of this Article, Article IV, Section 6, Article V, Section 5, or Article 
XV, Section 2 (0), shall be entitled, notwithstanding the provisions 
of Section i (a) of this Article, to buy the currency of another mem- 
ber from the Fund with its own currency for any purpose, including 
capital transfers. Purchases for capital transfers under this Section 
shall not, however, be permitted if they have the effect of raising 
the Fund's holdings of the currency of the member desiring to pur- 
chase above seventy-five per cent of its quota, or of reducing the 
Fund's holdings of the currency desired below seventy- five per cent 
of the quota of the member whose currency is desired. 

Section 3. Controls of capital transfers 

Members may exercise such controls as are necessary to regulate 
international capital movements, but no member may exercise these 

39 



BRETTON WOODS 

controls in a manner which will restrict payments for current 
transactions or which will unduly delay transfers of funds in settle- 
ment cf commitments, except as provided in Article VII, Section 3 
(6), and in Article XIV, Section 2. 

Article VII 

SCARCE CURRENCIES 

Section i . General scarcity of currency 

If the Fund finds that a general scarcity of a particular currency is 
developing, the Fund may so inform members and may issue a 
report setting forth the causes of the scarcity and containing recom- 
mendations designed to bring it to an end. A representative of the 
member whose currency is involved shall participate in the prepara- 
tion of the report. 

Section 2. Measures to replenish the Fund's holdings of scarce 

currencies 

The Fund may, if it deems such action appropriate to replenish 
its holdings of any member's currency, take either or both of the 
following steps: 

(i) Propose to the member that, on terms and conditions agreed 
between the Fund and the member, the latter lend its cur- 
rency to the Fund or that, with the approval of the member, 
the Fund borrow such currency from some other source cither 
within or outside the territories of the member, but no mem- 
ber shall be under any obligation to make such loans to the 
Fund or to approve the borrowing of its currency by the Fund 
from any other source, 
(ii) Require the member to sell its currency to the Fund for gold. 

Section 3. Scarcity of the Fund's holdings 

(a) If it becomes evident to the Fund that the demand for a mem- 
ber's currency seriously threatens the Fund's ability to supply that 
currency, the Fund, whether or not it has issued a report under 
Section i of this Article, shall formally declare such currency scarce 
and shall thenceforth apportion its existing and accruing supply of 
the scarce currency with due regard to the relative needs of members, 
the general international economic situation and any other pertinent 
considerations. The Fund shall also issue a report concerning its 
action. 

(b) A formal declaration under (a) above shall operate as an 
authorization to any member, after consultation with the Fund, 
temporarily to impose limitations on the freedom of exchange 

40 



BRETTON WOODS 

operations in the scarce currency. Subject to the provisions of Article 
IV, Sections 3 and 4, the member shall have complete jurisdiction in 
determining the nature of such limitations, but they shall be no more 
restrictive than is necessary to limit the demand for the scarce cur- 
rency to the supply held by, or accruing to, the member in question; 
and they shall be relaxed and removed as rapidly as conditions per- 
mit. 

(c) The authorization under (b) above shall expire whenever the 
Fund formally declares the currency in question to be no longer 



Section 4. Administration of restrictions 

Any member imposing restrictions in respect of the currency of 
any other member pursuant to the provisions of Section 3 (b) of this 
Article shall give sympathetic consideration to any representations 
by the other member regarding the administration of such restric- 
tions. 

Section 5. Effect of other international agreements on restrictions 

Members agree not to invoke the obligations of any engagements 
entered into with other members prior to this Agreement in. such a 
manner as will prevent the operation of the provisions of this Article. 

Article VIII 

GENERAL OBLIGATIONS OF MEMBERS 

Section i. Introduction 

In addition to the obligations assumed under other articles of this 
Agreement, each member undertakes the obligations set out in this 
Article. 

Section 2. Avoidance of restrictions on current payments 

(a) Subject to the provisions of Article VII, Section 3 (), and 
Article XIV, Section 2, no member shall, without the approval of 
the Fund, impose restrictions on the making of payments and trans- 
fers for current international transactions. 

(b) Exchange contracts which involve the currency of any member 
and which are contrary to the exchange control regulations of that 
member maintained or imposed consistently with this Agreement 
shall be unenforceable in the territories of any member. In addition, 
members may, by mutual accord, co-operate in measures for the 
purpose of making the exchange control regulations of either mem- 
ber more effective, provided that such measures and regulations are 
consistent with this Agreement. 

4* 



BRETTON WOODS 

Section 3. Avoidance of discriminatory currency practices 

No member shall engage in, or permit any of its fiscal agencies 
referred to in Article V, Section i , to engage in, any discriminatory 
currency arrangements or multiple currency practices except as 
authorized under this Agreement or approved by the Fund. If such 
arrangements and practices are engaged in at the date when this 
Agreement enters into force the member concerned shall consult 
with the Fund as to their progressive removal unless they are main- 
tained or imposed under Article XIV, Section 2, in which case the 
provisions of Section 4 of that Article shall apply. 

Section 4. Convertibility of foreign held balances 

(a) Each member shall buy balances of its currency held by an- 
other member if the latter, in requesting the purchase, represents 

(i) that the balances to be bought have been recently acquired as 

a result of current transactions; or 

(ii) that their conversion is needed for making payments for cur- 
rent transactions. 

The buying member shall have the option to pay either in the cur- 
rency of the member making the request or in gold. 

(b) The obligation in (a) above shall not apply 

(i) when the convertibility of the balances has been restricted 
consistently with Section 2 of this Article, or Article VI, 
Section 3; or 

(ii) when the balances have accumulated as a result of tran- 
sactions effected before the removal by a member of restric- 
tions maintained or imposed under Article XIV, Section 2. 
(iii) When the balances have been acquired contrary to the ex- 
change regulations of the member which is asked to buy them; 
or 

(iv) When the currency of the member requesting the purchase 
has been declared scarce under Article VII, Section 3 (a); 
or 

(v) When the member requested to make the purchase is for any 
reason not entitled to buy currencies of other members from 
the Fund for its own currency. 

Section 5. Furnishing of information 

(a) The Fund may require members to furnish it with such in- 
formation as it deems necessary for its operations, including, as the 
minimum necessary for the effective discharge of the Fund's duties, 
national data on the following matters: 

42 



BRETTON WOODS 

(i) Official holdings at home and abroad, of ( i) gold, (2) foreign 
exchange. 

(ii) Holdings at home and abroad by banking and financial 
agencies, other than official agencies, of (i) gold, (2) foreign 
exchange. 

(iii) Production of gold. 

(iv) Gold exports and imports according to countries of destina- 

tion and origin. 

(v) Total exports and imports of merchandise, in terms of local 
currency values, according to countries of destination and 
origin. 

(vi) International balance of payments, including (i) trade in 
goods and services, (2) gold transactions, (3) known capital 
transactions, and (4) other items. 

(vii) International investment position, i.e., investments within 
the territories of the member owned abroad and investments 
abroad owned by persons in its territories so far as it is 
possible to furnish this information, 
(viii) National income. 

(ix) Price indices, i.e., indices of commodity prices in wholesale 

and retail markets and of export and import prices, 
(x) Buying and selling rates for foreign currencies. 

(xi) Exchange controls, i.e., a comprehensive statement of ex- 
change controls in effect at the time of assuming member- 
ship in the Fund and details of subsequent changes as they 
occur. 

(xii) Where official clearing arrangements exist, details of 
amounts awaiting clearance in respect of commercial and 
financial transactions, and of the length of time during 
which such arrears have been outstanding. 

(b) In requesting information the Fund-shall take into considera- 
tion the varying ability of members to furnish the data requested. 
Members shall be under no obligation to furnish information in such 
detail that the affairs of individuals or corporations are disclosed. 
Members undertake, however, to furnish the desired information in 
as detailed and accurate a manner as is practicable, and, so far as 
possible, to avoid mere estimates. 

(c} The Fund may arrange to obtain further information by 
agreement with members. It shall act as a centre for the collection 
arid exchange of information on monetary and financial prob- 
lems, thus facilitating the preparation of studies designed to assist 
members in developing policies which further the purposes of the 
Fund. 

43 



BRETTON WOODS 

Section 6. Consultation between members regarding existing inter- 
national agreements 

Where under this Agreement a member is authorized in the special 
or temporary circumstances specified in the Agreement to maintain 
or establish restrictions on exchange transactions, and there are 
other engagements between members entered into prior to this 
Agreement which conflict with the application of such restrictions, 
the parties to such engagements will consult with one another with a 
view to making such mutually acceptable adjustments as may be 
necessary. The provisions of this Article shall be without prejudice to 
the operation of Article VII, Section 5. 

Article IX 

STATUS, IMMUNITIES AND PRIVILEGES 

Section i. Purposes of Article 

To enable the Fund to fulfil the functions with which it is entrust- 
ed, the status, immunities and privileges set forth in this Article shall 
be accorded to the Fund in the territories of each member. 

Section 2. Status of the Fund 

The Fund shall possess full juridical personality, and, in particular, 
the capacity: 

(i) to contract; 

(ii) to acquire and dispose of immovable and movable property; 

(iii) to institute legal proceedings. 

Section 3. Immunity from judicial process 

The Fund, its property and its assets, wherever located and by 
whomsoever held, shall enjoy immunity from every form of judicial 
process except to the extent that it expressly waives its immunity for 
the purpose of any proceedings or by the terms of any contract. 

Section 4. Immunity from other action 

Property and assets of the Fund, wherever located and by whom- 
soever held, shall be immune from search, requisition, confiscation, 
expropriation or any other form of seizure by executive or legislative 
action. 

Section 5. Immunity of archives 

The archives of the Fund shall be inviolable. 

Section 6. Freedom of assets from restrictions 

To the extent necessary to carry out the operations provided for in 
this Agreement, all property and assets of the Fund shall be free 
from restrictions, regulations, controls and moratoria of any nature. 

44 



BRETTON WOODS 

Section 7. Privilege for communications 

The official communications of the Fund shall be accorded by 
members the same treatment as the official communications of other 
members. 

Section 8. Immunities and privileges of officers and employees 

All governors, executive directors, alternates, officers and employ- 
ees of the Fund 

(i) shall be immune from legal process with respect to acts per- 
formed by them iri their official capacity except when the 
Fund waives this immunity. 

(ii) not being local nationals, shall be granted the same im- 
munities from immigration restrictions, alien registration re- 
quirements and national service obligations and the same 
facilities as regards exchange restrictions as are accorded by 
members to the representatives, officials, and employees of 
comparable rank of other members. 

(iii) shall be granted the same treatment in respect of travelling 
facilities as is accorded by members to representatives, officials 
and employees of comparable rank of other members. 

Section 9. Immunities from taxation 

(a) The Fund, its assets, property, income and its operations and 
transactions authorized by this Agreement, shall be immune from all 
taxation and from all customs duties. The Fund shall also be immune 
from liability for the collection or payment of any tax or duty. 

(b) No tax shall be levied on or in respect of salaries and emolu- 
ments paid by the Fund to executive directors, alternates, officers or 
employees of the Fund who are not local citizens, local subjects, or 
other local nationals. 

(c) No taxation of any kind shall be levied on any obligation or 
security issued by the Fund, including any dividend or interest 
thereon, by whomsoever held 

(i) which discriminates against such obligation or security solely 

because of its origin; or 

(ii) if the sole jurisdictional basis for such taxation is the place or 
currency in which it is issued, made payable or paid, or the loca- 
tion of any office or place of business maintained by the Fund. 

Section 10. Application of Article 

Each member shall take such action as is necessary in its own ter- 
ritories for the purpose of making effective in terms of its own law the 
principles set forth in this Article and shall inform the Fund of the 
detailed action which it has taken. 

45 



BRETTON WOODS 

Article X 

RELATIONS WITH OTHER INTERNATIONAL ORGANIZATIONS 

The Fund shall co-operate within the terms of this Agreement 
with any general international organization and with public inter- 
national organizations having specialized responsibilities in related 
fields. Any arrangements for such co-operation which would involve 
a modification of any provision of this Agreement may be effected 
only after amendment to this Agreement under Article XVII. 

Article XI 

RELATIONS WITH NON-MEMBER COUNTRIES 

Section i. Undertakings regarding relations with non-member 
countries 

Each member undertakes: 

(i) Not to engage in, nor to permit any of its fiscal agencies re- 
ferred to in Article V, Section i , to engage in, any transactions 
with a non-member or with persons in a non-member's ter- 
ritories which would be contrary to the provisions of this 
Agreement or the purposes of the Fund; 

(ii) Not to co-operate with a non-member or with persons in a 
non-mernber's territories in practices which would be con- 
trary to the provisions of this Agreement or the purposes of 
the Fund; and 

(iii) To co-operate with the Fund with a view to the application 
in its territories of appropriate measures to prevent trans- 
actions with non-members or with persons in their territories 
which would be contrary to the provisions of this Agreement 
or the purposes of the Fund. 

Section 2. Restrictions on transactions with non-member countries 
Nothing in this Agreement shall affect the right of any member 
to impose restrictions on exchange transactions with non-mem- 
bers or with persons in their territories unless the Fund finds 
that such restrictions prejudice the interests of members and are 
contrary to the purposes of the Fund. 

Article XII 

ORGANIZATION AND MANAGEMENT 

Section i . Structure of the Fund 

The Fund shall have a Board of Governors, Executive Directors, 
a Managing Director and a staff. 



BRETTON WOODS 

Section 2 . Board of Governors 

(a) All powers of the Fund shall be vested in the Board of Gover- 
nors, consisting of one governor and one alternate appointed by each 
member in such manner as it may determine. Each governor and 
each alternate shall serve for five years, subject to the pleasure of the 
member appointing him, and may be reappointed. No alternate 
may vote except in the absence of his principal. The Board shall 
select one of the governors as chairman. 

(b) The Board of Governors may delegate to the Executive Direc- 
tors authority to exercise any powers of the Board, except the power 
to: 

(i) Admit new members and determine the conditions of their 

admission. 

(ii) Approve a revision of quotas, 
(iii) Approve a uniform change in the par value of the currencies 

of all members. 

(iv) Make arrangements to co-operate with other international 
organizations (other than informal arrangements of a tem- 
porary or administrative character). 

(v) Determine the distribution of the net income of the Fund. 
(vi) Require a member to withdraw. 
(vii) Decide to liquidate the Fund. 

(viii) Decide appeals from interpretations of this Agreement given 
by the Executive Directors. 

(c) The Board of Governors shall hold an annual meeting and 
such other meetings as may be provided for by the Board or called 
by the Executive Directors. Meetings of the Board shall be called by 
the Directors whenever requested by five members or by members 
having one quarter of the total voting power. 

(d) A quorum for any meeting of the Board of Governors shall be a 
majority of the governors exercising not less than two-thirds of the 
total voting power. 

(e) Each governor shall be entitled to cast the number of votes 
allotted under Section 5 of this Article to the member appointing 
him. 

(/) The Board of Governors may by regulation establish a pro- 
cedure whereby the Executive Directors, when they deem such 
action to be in the best interests of the Fund, may obtain a vote of 
the governors on a specific question without calling a meeting of the 
Board. 

(g) The Board of Governors, and the Executive Directors to the 
extent authorized, may adopt such rules and regulations as may be 
necessary or appropriate to conduct the business of the Fund. 

47 



BRETTON WOODS 

(h) Governors and alternates shall serve as such without com- 
pensation from the Fund, but the Fund shall pay them reasonable 
expenses incurred in attending meetings. 

(i) The Board of Governors shall determine the remuneration to 
be paid to the Executive Directors and the salary and terms of the 
contract of service of the Managing Director. 

Section 3. Executive Directors 

(a) The Executive Directors shall be responsible for the conduct of 
the general operations of the Fund, and for this purpose shall exer- 
cise all the powers delegated to them by the Board of Governors. 

(b) There shall be not less than twelve directors who need not be 
governors, and of whom 

(i) Five shall be appointed by the five members having the 

largest quotas; 
(ii) Not more than two shall be appointed when the provisions of 

(c) below apply; 
(iii) Five shall be elected by the members not entitled to appoint 

directors, other than the American Republics; and 
(iv) Two shall be elected by the American Republics not entitled 

to appoint directors. 

For the purposes of this paragraph, members means governments of 
countries whose names are set forth in Schedule A, whether they 
become members in accordance with Article XX or in accordance 
with Article II, Section 2. When governments of other countries 
become members, the Board of Governors may, by a four-fifth 
majority of the total voting power, increase the number of directors 
to be elected. 

(c) If, at the second regular election of directors and thereafter, 
the members entitled to appoint directors under (b) (i) above do not 
include the two members, the holdings of whose currencies by the 
Fund have been, on the average over the preceding two years, 
reduced below their quotas by the largest absolute amounts in terms 
of gold as a common denominator, either one or both of such mem- 
bers, as the case may be, shall be entitled to appoint a director. 

(d) Subject to Article XX, Section 3 (b), elections of elective 
directors shall be conducted at intervals of two years in accordance 
with the provisions of Schedule C, supplemented by such regulations 
as the Fund deems appropriate. Whenever the Board of Governors 
increases the number of directors to be elected under (b) above, it 
shall issue regulations making appropriate changes in the propor- 
tion of votes required to elect directors under the provisions of 
Schedule G. 

48 



BRETTON WOODS 

(e) Each director shall appoint an alternate with full power to act 
for him when he is not present. When the directors appointing them 
are present, alternates may participate in meetings but may not vote. 

(/) Directors shall continue in office until their successors are 
appointed or elected. If the office of an elected director becomes 
vacant more than ninety days before the end of his term, another 
director shall be elected for the remainder of the term by the mem- 
bers who elected the former director. A majority of the votes cast 
shall be required for election. While the office remains vacant, the 
alternate of the former director shall exercise his powers, except that 
of appointing an alternate. 

(g) The Executive Directors shall function in continuous session 
at the principal office of the Fund and shall meet as often as the 
business of the Fund may require. 

(h) A quorum for any meeting of the Executive Directors shall be 
a majority of the directors representing not less than one-half of the 
voting power. 

(i) Each appointed director shall be entitled to cast the number of 
votes allotted under Section 5 of this Article to the member appoint- 
ing him. Each elected director shall be entitled to cast the number of 
votes which counted towards his election. When the provisions of 
Section 5 (b) of this Article are applicable, the votes which a director 
would otherwise be entitled to cast shall be increased or decreased 
correspondingly. All the votes which a director is entitled to cast 
shall be cast as a unit. 

(j) The Board of Governors shall adopt regulations under which 
a member not entitled to appoint a director under (b) above may 
send a representative to attend any meeting of the Executive Direc- 
tors when a request made by, or a matter particularly affecting, 
that member is under consideration. 

(A;) The Executive Directors may appoint such committees as they 
deem advisable. Membership of committees need not be limited to 
governors or directors or their alternates. 

Section 4. Managing Director and staff 

(a) The Executive Directors shall select a Managing Director who 
shall not be a governor or an executive director. The Managing 
Director shall be chairman of the Executive Directors, but shall have 
no vote except a deciding vote in case of an equal division. He may 
participate in meetings of the Board of Governors, but shall not vote 
at such meetings. The Managing Director shall cease to hold office 
when the Executive Directors so decide. 

(b) The Managing Director shall be chief of the operating staff 
of the Fund and shall conduct, under the direction of the Executive 

d 49 



BRETTON WOODS 

Directors, the ordinary business of the Fund. Subject to the general 
control of the Executive Directors, he shall be responsible for the 
organization, appointment and dismissal of the staff of the Fund. 

(c) The Managing Director and the staff of the Fund, in the dis- 
charge of their functions, shall owe their duty entirely to the Fund 
and to no other authority. Each member of the Fund shall respect 
the international character of this duty and shall refrain from all 
attempts to influence any of the staff in the discharge of his functions. 

(d) In appointing the staff the Managing Director shall, subject to 
the paramount importance of securing the highest standards of 
efficiency and of technical competence, pay due regard to the im- 
portance of recruiting personnel on as wide a geographical basis as 
possible. 

Section 5. Voting 

(a) Each member shall have two hundred and fifty votes plus one 
additional vote for each part of its quota equivalent to one hundred 
thousand United States dollars. 

(b) Whenever voting is required under Article V, Section 4 or 5, 
each member shall have the number of votes to which it is entitled 
under (a) above, adjusted: 

(i) by the addition of one vote for the equivalent of each 400,000 
United States dollars of net sales of its currency up to the date 
when the vote is taken, or 

(ii) by the subtraction of one vote for the equivalent of each 
400,000 United States dollars of its net purchases of the cur- 
rencies of other members up to the date when the vote is 
taken 

provided, that neither net purchases nor net sales shall be deemed at 
any time to exceed an amount equal to the quota of the member 
involved. 

(c) For the purpose of all computations under this Section, United 
States dollars shall be deemed to be of the weight and fineness in 
effect on July i , 1944, adjusted for any uniform change under Article 
IV, Section 7, if a waiver is made under Section 8 (d) of that Article. 

(d) Except as otherwise specifically provided, all decisions of the 
Fund shall be made by a majority of the votes cast. 

Section 6. Distribution of net income 

(a) The Board of Governors shall determine annually what part 
of the Fund's net income shall be placed to reserve and what part, 
if any, shall be distributed. 

(b) If any distribution is made, there shall first be distributed a 
two per cent non-cumulative payment to each member on the 

50 



BRETTON WOODS 

amount by which seventy-five per cent of its quota exceeded the 
Fund's average holdings of its currency during that year. The 
balance shall be paid to all members in proportion to their quotas. 
Payments to each member shall be made in its own currency. 

Section 7. Publication of reports 

(a) The Fund shall publish an annual report containing an audited 
statement of its accounts, and shall issue, at intervals of three months 
or less, a summary statement of its transactions and its holdings of 
gold and currencies of members. 

(b) The Fund may publish such other reports as it deems desirable 
for carrying out its purposes. 

Section 8. Communication of views to members 

The Fund shall at all times have the right to communicate its 
views informally to any member on any matter arising under this 
Agreement. The Fund may, by a two-thirds majority of the total 
voting power, decide to publish a report made to a member re- 
garding its monetary or economic conditions and developments 
which directly tend to produce a serious disequilibrium in the inter- 
national balance of payments of members. If the member is not 
entitled to appoint an executive director, it sruill be entitled to 
representation in accordance with Section 3 (j) of this Article. The 
Fund shall not publish a report involving changes in the fundamental 
structure of the economic organization of members. 

Article XIII 

OFFICES AND DEPOSITORIES 

Section i . Location of offices 

The principal office of the Fund shall be located in the territory 
of the member having the largest quota, and agencies or branch 
offices may be established in the territories of other members. 

Section 2. Depositories 

(a) Each member country shall designate its central bank as a 
depository for all the Fund's holdings of its currency, or if it has no 
central bank it shall designate such other institution as may be ac- 
ceptable to the Fund. 

(b) The Fund may hold other assets, including gold, in the de- 
positories designated by the five members having the largest quotas 
and in such other designated depositories as the Fund may select. 
Initially, at least one half of the holdings of the Fund shall be held 
in the depository designated by the member in whose territories the 

51 



BRETTON WOODS 

Fund has its principal office and at least forty per cent shall be held 
in the depositories designated by the remaining four members re- 
ferred to above. However, all transfers of gold by the Fund shall be 
made with due regard to the costs of transport and anticipated 
requirements of the Fund. In an emergency the Executive Directors 
may transfer all or any part of the Fund's gold holdings to any place 
where they can be adequately protected. 

Section 3. Guarantee of the Fund's assets 

Each member guarantees all assets of the Fund against loss re- 
sulting from failure or default on the part of the depository desig- 
nated by it. 

Article XIV 

TRANSITIONAL PERIOD 

Section i. Introduction 

The Fund is not intended to provide facilities for relief or recon- 
struction or to deal with international indebtedness arising out of 
the war. 

Section 2. Exchange restrictions 

In the post-war transitional period members may, notwithstand- 
ing the provisions of any other articles of this Agreement, maintain 
and adapt to changing circumstances (and, in the case of members 
whose territories have been occupied by the enemy, introduce 
where necessary) restrictions on payments and transfers for current 
international transactions. Members shall, however, have con- 
tinuous regard in their foreign exchange policies to the purposes of 
the Fund; and, as soon as conditions permit, they shall take all 
possible measures to develop such commercial and financial ar- 
rangements with other members as will facilitate international pay- 
ments and the maintenance of exchange stability. In particular, 
members shall withdraw restrictions maintained or imposed under 
this Section as soon as they are satisfied thai? they will be able, in the 
absence of such restrictions, to settle their balance of payments in a 
manner which will not unduly encumber their access to the resources 
of the Fund. 

Section 3. Notification to the Fund 

Each member shall notify the Fund before it becomes eligible 
under Article XX, Section 4 (c) or (d) to buy currency from the 
Fund, whether it intends to avail itself of the transitional arrange- 
ments in Section 2 of this Article, or whether it is prepared to accept 
the obligations of Article VIII, Sections 2, 3 and 4. A member 

52 



BRETTON WOODS 

availing itself of the transitional arrangements shall notify the Fund 
as soon thereafter as it is prepared to accept the above-mentioned 
obligations. 

Section 4. Action of the Fund relating to restrictions 

Not later than three years after the date on which the Fund begins 
operations and in each year thereafter, the Fund shall report on the 
restrictions still in force under Section 2 of this Article. Five years 
after the date on which the Fund begins operations, and in each year 
thereafter, any member still retaining any restrictions inconsistent 
with Article VIII, Sections 2, 3, or 4, shall consult the Fund as to 
their further retention. The Fund may, if it deems such action 
necessary in exceptional circumstances, make representations to any 
member thcit conditions arc favourable for the withdrawal of any 
particular restriction, or for the general abandonment of restrictions, 
inconsistent with the provisions of any other articles of this Agree- 
ment. The member shall be given a suitable time to reply to such 
representations. If the Fund finds that the member persists in main- 
taining restrictions which are inconsistent with the purposes of the 
Fund, the member shall be subject to Article XV, Section 2 (a). 

Section 5. Nature of transitional period 

In its relations with members, the Fund shall recognize that 
the post-war transitional period will be one of change and adjust- 
ment and in making decisions on requests occasioned thereby 
which are presented by any member it shall give the member the 
benefit of any reasonable doubt. 

Article XV 

WITHDRAWAL FROM MEMBERSHIP 

Section i . Right of members to withdraw 

Any member may withdraw from the Fund at any time by trans- 
mitting a notice in writing to the Fund at its principal office. With- 
drawal shall become effective on the date such notice is received. 

Section 2. Compulsory withdrawal 

(a) If a member fails to fulfill any of its obligations under this 
Agreement, the Fund may declare the member ineligible to use the 
resources of the Fund. Nothing in this Section shall be deemed to 
limit the provisions of Article IV, Section 6, Article V, Section 5, 
or Article VI, Section i . 

(b) If, after the expiration of a reasonable period the member per- 
sists in its failure to fulfil any of its obligations under this Agreement, 

53 



BRETTON WOODS 

or a difference between a member and the Fund under Article IV, 
Section 6, continues, that member may be required to withdraw 
from membership in the Fund by a decision of the Board of Gover- 
nors carried by a majority of the governors representing a majority of 
the total voting power. 

(c) Regulations shall be adopted to ensure that before action is 
taken against any member under (a) or (b) above, the member shall 
be informed in reasonable time of the complaint against it and given 
an adequate opportunity for stating its case, both orally and in 
writing. 

Section 3. Settlement of accounts with members withdrawing 

When a member withdraws from the Fund, normal transactions 
of the Fund in its currency shall cease and settlement of all accounts 
between it and the Fund shall be made with reasonable despatch by 
agreement between it and the Fund. If agreement is not reached 
promptly, the provisions of Schedule D shall apply to the settlemtnt 
of accounts. 

Article XVI 

EMERGENCY PROVISIONS 

Section i. Temporary Suspension 

(a) In the event of an emergency or the development of unforeseen 
circumstances threatening the operations of the Fund, the Executive 
Directors by unanimous vote may suspend for a period of not more 
than one hundred and twenty days the operation of any of the follow- 
ing provisions: 

(i) Article IV, Sections 3 and 4 (b). 

(ii) Article V, Sections 2, 3, 7, 8 (a) and (c). 
(iii) Article VI, Section 2. 
(iv) Article XI, Section i. 

(b) Simultaneously with any decision to suspend the operation of 
any of the foregoing provisions, the Executive Directors shall call a 
meeting of the Board of Governors for the earliest practicable date. 

(c) The Executive Directors may not extend any suspension beyond 
one hundred and twenty days. Such suspension may be extended, 
however, for an additional period of not more than two hundred 
and forty days, if the Board of Governors by a four-fifths majority 
of the total voting power so decides, but it may not be further extend- 
ed except by amendment of this Agreement pursuant to Article 
XVII. 

(d) The Executive Directors may, by a majority of the total voting 
power, terminate such suspension at any time. 

54 



BRETTON WOODS 

Section Q. Liquidation of the Fund 

(a) The Fund may not be liquidated except by decision of the 
Board of Governors. In an emergency, if the Executive Directors 
decide that liquidation of the Fund may be necessary, they may 
temporarily suspend all transactions, pending decision by the Board. 

(b) If the Board of Governors decides to liquidate the Fund, the 
Fund shall forthwith cease to engage in any activities except those 
incidental to the orderly collection and liquidation of its assets and 
the settlement of its liabilities, and all obligations of members under 
this Agreement shall cease except those set out in this Article, in 
Article XVIII, paragraph (c), in Schedule D, paragraph 7, and in 
Schedule E. 

(c) Liquidation shall be administered in accordance with the pro- 
visions of Schedule E. 

Article XVII 

AMENDMENTS 

(a) Any proposal to introduce modifications in this Agreement, 
whether emanating from a member, a governor or the Executive 
Directors, shall be communicated to the chairman of the Board of 
Governors who shall bring the proposal before the Board. If the pro- 
posed amendment is approved by the Board the Fund shall, by 
circular letter or telegram, ask all members whether they accept the 
proposed amendment. When three-fifths of the members, having 
four-fifths of the total voting power, have accepted the proposed 
amendment, the Fund shall certify the fact by a formal communi- 
cation addressed to all members. 

(b) Notwithstanding (a) above, acceptance by all members is re- 
quired in the case of any amendment modifying 

(i) the right to withdraw from the Fund (Article XV, Section i) ; 
(ii) the provision that no change in a member's quota shall be 

made without its consent (Article III, Section 2); 
(iii) the provision that no change may be made in the par value of 

a member's currency except on the proposal of that member 

(Article IV, Section 5 (b)). 

(c) Amendments shall enter into force for all members three 
months after the date of the formal communication unless a shorter 
period is specified in the circular letter or telegram. 

Article XVIII 

INTERPRETATION 

(a) Any question of interpretation of the provisions of this Agree- 
ment arising between any member and the Fund or between any 
members of the Fund shall be submitted to the Executive Directors 

55 



BRETTON WOODS 

for their decision. If the question particularly affects any member 
not entitled to appoint an executive director it shall be entitled to 
representation in accordance with Article XII, Section 3 (j). 

(b) In any case where the Executive Directors have given a de- 
cision under (a) above, any member may require that the question 
be referred to the Board of Governors, whose decision shall be final. 
Pending the result of the reference to the Board the Fund may, so 
far as it deems necessary, act on the basis of the decision of the 
Executive Directors. 

(c) Whenever a disagreement arises between the Fund and a 
member which has withdrawn, or between the Fund and any mem- 
ber during the liquidation of the Fund, such disagreement shall be 
submitted to arbitration by a tribunal of three arbitrators, one ap- 
pointed by the Fund, another by the member or withdrawing mem- 
ber and an umpire who, unless the parties otherwise agree, shall be 
appointed by the President of the Permanent Court of International 
Justice or such other authority as may have been prescribed by 
regulation adopted by the Fund. The umpire shall have full power to 
settle all questions of procedure in any case where the parties arc in 
disagreement with respect thereto. 

Article XIX 

EXPLANATION OF TERMS 

In interpreting the provisions of this Agreement the P^und and its 
members shall be guided by the following: 

(a) A member's monetary reserves means its net official holdings 
of gold, of convertible currencies of other members, and of the cur- 
rencies of such non-members as the Fund may specify. 

(b) The official holdings of a member means central holdings (that 
is, the holdings of its Treasury, central bank, stabilization fund, or 
similar fiscal agency). 

(c) The holdings of other official institutions or other banks within 
its territories may, in any particular case, be deemed by the Fund, 
after consultation with the member, to be official holdings to the 
extent that they are substantially in excess of working balances; 
provided that for the purpose of determining whether, in a particular 
case, holdings are in excess of working balances, there shall be de- 
ducted from such holdings amounts of currency due to official in- 
stitutions and banks in the territories of members or non-members 
specified under (d) below. 

(d) A member's holdings of convertible currencies means its 
holdings of the currencies of other members which are not availing 
themselves of the transitional arrangements under Article XIV, 

56 



BRETTON WOODS 

Section 2, together with its holdings of the currencies of such non- 
members as the Fund may from time to time specify. The term cur- 
rency for this purpose includes without limitation coins, paper 
money, bank balances, bank acceptances, and government obliga- 
tions issued with a maturity not exceeding twelve months. 

(e) A member's monetary reserves shall be calculated by de- 
ducting from its central holdings the currency liabilities to the 
Treasuries, central banks, stabilization funds, or similar fiscal 
agencies of other members or non-members specified under (d) 
above, together with similar liabilities to other official institutions 
and other banks in the territories of members, or non-members 
specified under (d) above. To these net holdings shall be added the 
sums deemed to be official holdings of other official institutions and 
other banks under (c) above. 

(/) The Fund's holdings of the currency of a member shall include 
any securities accepted by the Fund under Article III, Section 5. 

(g) The Fund, after consultation with a member which is availing 
itself of the transitional arrangements under Article XIV, Section 2, 
may deem holdings of the currency of that member which carry 
specified rights of conversion into another currency or into gold to 
be holdings of convertible currency for the purpose of the calcula- 
tion of monetary reserves. 

(h) For the purpose of calculating gold subscriptions under Article 
III, Section 3, a member's net official holdings of gold and United 
States dollars shall consist of its official holdings of gold and United 
States currency after deducting central holdings of its currency by 
other countries and holdings of its currency by other official in- 
stitutions and other banks if these holdings carry specified rights of 
conversion into gold or United States currency. 

(i) Payments for current transactions means payments which are 
not for the purpose of transferring capital, and includes, without 
limitation : 

r. All payments due in connection with foreign trade, other 
current business, including services, and normal short-term bank- 
ing and credit facilities; 

2. Payments due as interest on loans and as net income from 
other investments; 

3. Payments of moderate amount for amortization of loans or 
for depreciation of direct investments; 

4. Moderate remittances for family living expenses. 

The Fund may, after consultation with the members concerned, 
determine whether certain specific transactions are to be considered 
current transactions or capital transactions. 

57 



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Article XX 

FINAL PROVISIONS 

Section i. Entry into force 

This Agreement shall enter into force when it has been signed on 
behalf of governments having sixty-five per cent of the total of the 
quotas set forth in Schedule A and when the instruments referred to 
in Section 2 (a) of this Article have been deposited on their behalf, 
but in no event shall this Agreement enter into force before May i, 



Section 2. Signature 

(a) Each government on whose behalf this Agreement is signed 
shall deposit with the Government of the United States of America 
an instrument setting forth that it has accepted this Agreement in 
accordance with its law and has taken all steps necessary to enable 
it to carry out all of its obligations under this Agreement. 

(b) Each government shall become a member of the Fund as from 
the date of the deposit on its behalf of the instrument referred to in 
(a) above, except that no government shall become a member before 
this Agreement enters into force under Section i of this Article. 

(r) The Government of the United States of America shall inform 
the governments of all countries whose names are set forth in 
Schedule A, and all governments whose membership is approved 
in accordance with Article II, Section 2, of all signatures of this 
Agreement and of the deposit of all instruments referred to in (a) 
above. 

(d) At the time this Agreement is signed on its behalf, each govern- 
ment shall transmit to the Government of the United States of 
America one one-hundredth of one per cent of its total subscription 
in gold or United States dollars for the purpose of meeting adminis- 
trative expenses of the Fund. The Government of the United States 
of America shall hold such funds in a special deposit account and 
shall transmit them to the Board of Governors of the Fund when the 
initial meeting has been called under Section 3 of this Article. If 
this Agreement has not come into force by December 31, 1945, the 
Government of the United States of America shall return such funds 
to the governments that transmitted them. 

(e) This Agreement shall remain open for signature at Washington 
on behalf of the governments of the countries whose names are set 
forth in Schedule A until December 31, 1945. 

(J) After December 31, 1945, this Agreement shall be open for 
signature on behalf of the government of any country whose mem- 
bership has been approved in accordance with Article II, Section 2. 

58 



BRETTON WOODS 

(g) By their signature of this Agreement, all governments accept it 
both on their own behalf and in respect of all their colonies, overseas 
territories, all territories under their protection, suzerainty, or au- 
thority and all territories in respect of which they exercise a mandate. 

(h) In the case of governments whose metropolitan territories 
have been under enemy occupation, the deposit of the instrument 
referred to in (a) above may be delayed until one hundred and eighty 
days after the date on which these territories have been liberated. If, 
however, it is not deposited by any such government before the 
expiration of this period the signature affixed on behalf of that 
government shall become void and the portion of its subscription 
paid under (d) above shall be returned to it. 

(i) Paragraphs (d) and (h) shall come into force with regard to 
each signatory government as from the date of its signature. 

Section 3. Inauguration of the Fund 

(a) As soon as this Agreement enters into force under Section I of 
this Article, each member shall appoint a governor and the member 
having the largest quota shall call the first meeting of the Board of 
Governors. 

(b) At the first meeting of the Board of Governors, arrangements 
shall be made for the selection of provisional executive directors. 
The governments of the five countries for which the largest quotas 
arc set forth in Schedule A shall appoint provisional executive 
directors. If one or more of such governments have not become mem- 
bers, the executive directorships they would be entitled to fill shall 
remain vacant until they become members, or until January i, 1946, 
whichever is the earlier. Seven provisional executive directors shall 
be elected in accordance with the provisions of Schedule B and shall 
remain in office until the date of the first regular election of executive 
directors which shall be held as soon as practicable after January 
i, 1946. 

(c) The Board of Governors may delegate to the provisional exe- 
cutive directors any powers except those which may not be dele- 
gated to the Executive Directors. 

Section 4. Initial determination of par values 

(a) When the Fund is of the opinion that it will shortly be in a 
position to begin exchange transactions, it shall so notify the mem- 
bers and shall request each member to communicate within thirty 
days the par value of its currency based on the rates of exchange 
prevailing on the sixtieth day before the entry into force of this 
Agreement. No member whose metropolitan territory has been oc- 
cupied by the enemy shall be required to make such a communica- 

59 



BRETTON WOODS 

tion while that territory is a theatre of major hostilities or for such 
period thereafter as the Fund may determine. When such a member 
communicates the par value of its currency the provisions of (d) 
below shall apply. 

(b) The par value communicated by a member whose metro- 
politan territory has not been occupied by the enemy shall be the 
par value of that member's currency for the purposes of this Agree- 
ment unless, within ninety days after the request referred to in (a) 
above has been received, (i) the member notifies the Fund that it 
regards the par value as unsatisfactory, or (ii) the Fund notifies the 
member that in its opinion the par value cannot be maintained 
without causing recourse to the Fund on the part of that member or 
others on a scale prejudicial to the Fund and to members. When 
notification is given under (i) or (ii) above, the Fund and the mem- 
ber shall, within a period determined by the Fund in the light of all 
relevant circumstances, agree upon a suitable par value for that 
currency. If the Fund and the member do not agree within the 
period so determined, the member shall be deemed to have with- 
drawn from the Fund on the date when the period expires. 

(c) When the par value of a member's currency has been estab- 
lished under (b) above, either by the expiration of ninety days with- 
out notification, or by agreement after notification, the member shall 
be eligible to buy from the Fund the currencies of other members to 
the full extent permitted in this Agreement, provided that the Fund 
has begun exchange transactions. 

(d) In the case of a member whose metropolitan territory has been 
occupied by the enemy, the provisions of (b) above shall apply, 
subject to the following modifications: 

(i) The period of ninety days shall be extended so as to end on a 
date to be fixed by agreement between the Fund and the 
member. 

(ii) Within the extended period the member may, if the Fund has 
begun exchange transactions, buy from the Fund with its 
currency the currencies of other members, but only under 
such conditions and in such amounts as may be prescribed by 
the Fund. 

(iii) At any time before the date fixed under (i) above, changes 
may be made by agreement with the Fund in the par value 
communicated under (a) above. 

(e) If a member whose metropolitan territory has been occupied 
by the enemy adopts a new monetary unit before the date to be 
fixed under (d) (i) above, the par value fixed by that member for the 
new unit shall be communicated to the Fund and the provisions of 
(d) above shall apply. 

60 



BRETTON WOODS 

(f) Changes in par values agreed with the Fund under this Sec- 
tion shall not be taken into account in determining whether a pro- 
posed change falls within (i), (ii) or (iii) of Article IV, Section 5 (c). 

(g) A member communicating to the Fund a par value for the 
currency of its metropolitan territory shall simultaneously com- 
municate a value, in terms of that currency, for each separate cur- 
rency, where such exists, in the territories in respect of which it has 
accepted this Agreement under Section 2 (g) of this Article, but no 
member shall be required to make a communication for the separate 
currency of a territory which has been occupied by the enemy while 
that territory is a theatre of major hostilities or for such period there- 
after as the Fund may determine. On the basis of the par value so 
communicated, the Fund shall compute the par value of each 
separate currency. A communication or notification to the Fund 
under (a), (b) or (d) above regarding the par value of a currency, 
shall also be deemed, unless the contrary is stated, to be a communi- 
cation or notification regarding the par value of all the separate 
currencies referred to above. Any member may, however, make a 
communication or notification relating to the metropolitan or any 
of the separate currencies alone. If the member does so, the 
provisions of the preceding paragraphs (including (d) above, if a 
territory where a separate currency exists has been occupied by the 
enemy) shall apply to each of these currencies separately. 

(h) The Fund shall begin exchange transactions at such date as it 
may determine after members having sixty-five per cent of the total 
of the quotas set forth in Schedule A have become eligible, in accor- 
dance with the preceding paragraphs of this Section, to purchase the 
currencies of other members, but in no event until after major 
hostilities in Europe have ceased. 

(i) The Fund may postpone exchange transactions with any 
member if its circumstances are such that, in the opinion of the Fund 
they would lead to use of the resources of the Fund in a manner 
contrary to the purposes of this Agreement or prejudicial to the 
Fund or the members. 

(j) The par values of the currencies of governments which in- 
dicate their desire to become members after December 31, 1945, 
shall be determined in accordance with the provisions of Article II, 
Section 2. 

DONE at Washington, in a single copy which shall remain de- 
posited in the archives of the Government of the United States of 
America which shall transmit certified copies to all governments 
whose names are set forth in Schedule A and to all governments 
whose membership is approved in accordance with Article II, 
Section 2. 

61 



BRETTON WOODS 

SCHEDULE A 

QUOTAS 

(In millions of 
United States dollars) 

Australia . . . . . . . . . . . . . . 200 

Belgium . . . . . . . . . . . . . . 225 

Bolivia . . . . . . . . . . . . . . 10 

Brazil . . . . . . . . . . . . . . 150 

Canada . . . . . . . . . . . . . . 300 

Chile 50 

China . . . . . . . . . . . . . . 550 

Colombia . . . . . . . . . . . . 50 

Costa Rica . . . . . . . . . . . . 5 

Cuba 50 

Czechoslovakia . . . . . . . . . . . . 125 

Denmark 1 * 

Dominican Republic . . . . . . . . . . 5 

Ecuador . . . . . . . . . . . . . . 5 

Egypt 45 

El Salvador . . . . . . . . . . . . 2-5 

Ethiopia . . . . . . . . . . . . . . 6 

France . . . . . . . . . . . . . . 450 

Greece . . . . . . . . . . . . . . 40 

Guatemala . . . . . . . . . . . . 5 

Haiti 5 

Honduras . . . . . . . . . . . . . . 2-5 

Iceland . . . . . . . . . . . . . . i 

India . . . . . . . . . . . . . . 400 

Iran . . . . . . . . . . . . . . 25 

Iraq 8 

Liberia -5 

Luxembourg . . . . . . . . . . . . 10 

Mexico . . . . . . . . . . . . . . 90 

Netherlands 275 

New Zealand . . . . . . . . . . . . 50 

Nicaragua . . . . . . . . . . . . 2 

Norway . . . . . . . . . . . . . . 50 

Panama . . . . . . . . . . . . . . -5 

Paraguay . . . . . . . . . . . . . . 2 

Peru 25 

Philippine Commonwealth . . . . . . . . 15 

Poland . . . . . . . . . . . . . . 125 

Union of South Africa .. .. .. .. .. 100 

Union of Soviet Socialist Republics . . . . . . 1200 

United Kingdom . . . . . . . . . . . . 1300 

1 The quota of Denmark shall be determined by the Fund after the Danish 
Government has declared its readiness to sign this Agreement but before signature 
takes place. 

62 



BRETTON WOODS 

(In millions of 
United States dollars) 
United States . . . . . . . . . . . . 2750 

Uruguay . . . . . . . . . . . . . . 15 

Venezuela . . . . . . . . . . . . 15 

Yugoslavia . . . . . . . . . . . . 60 



SCHEDULE B 

PROVISIONS WITH RESPECT TO REPURCHASE BY A MEMBER OF ITS CURRENCY 
HELD BY THE FUND 

1. In determining the extent to which repurchase of a member's currency from 
the Fund under Article V, Section 7 (b) shall be made with each type of monetary 
reserve, that is, with gold arid with each convertible currency, the following rule, 
subject to 2 below, shall apply: 

(a) If the member's monetary reserves have not increased during the year, the 
amount payable to the Fund shall be distributed among all types of reserves 
in proportion to the member's holdings thereof at the end of the year. 

(b) If the member's monetary reserves have increased during the year, a part of 
the amount payable to the Fund equal to one-half of the increase shall be 
distributed among those types of reserves which have increased in proportion 
to the amount by which each of them has increased. The remainder of the 
sum payable to the Fund shall be distributed among all types of reserves in 
proportion to the member's remaining holdings thereof. 

(c) If after all the repurchases required under Article V, Section 7 (b}, had been 
made, the result would exceed any of the limits specified in Article V, Sec- 
tion 7 (c), the Fund shall require such repurchases to be made by the mem- 
bers proportionately in such manner that the limits will not be exceeded. 

2. The Fund shall not acquire the currency of any non-member under Article V, 
Section 7 (b) and (c). 

3. In calculating monetary reserves and the increase in monetary reserves during 
any year for the purpose of Article V, Section 7 (b) and (c), no account shall be 
taken, unless deductions have otherwise been made by the member for such 
holdings, of any increase in those monetary reserves which is due to currency 
previously inconvertible having become convertible during the year; or to holdings 
which are the proceeds of a long-term or medium-term loan contracted during the 
year; or to holdings which have been transferred or set aside for repayment of a 
loan during the subsequent year. 

4. In the case of members whose metropolitan territories have been occupied by 
the enemy, gold newly produced during the five years after the entry into force of 
this Agreement from mines located within their metropolitan territories shall not 
be included in computations of their monetary reserves or of increases in their 
monetary reserves. 



BRETTON WOODS 

SCHEDULE G 

ELECTION OF EXECUTIVE DIRECTORS 

1. The election of the elective executive directors shall be by ballot of the 
governors eligible to vote under Article XII, Section 3 (b) (iii) and (iv). 

2. In balloting for the five directors to be elected under Article XII, Section 3 (b) 
(iii), each of the governors eligible to vote shall cast for one person all of the votes 
to which he is entitled under Article XII, Section 5 (a). The five persons receiving 
the greatest number of votes shall be directors, provided that no person who re- 
ceived less than nineteen per cent of the total number of votes that can be cast 
(eligible votes) shall be considered elected. 

3. When five persons are not elected in the first ballot, a second ballot shall be 
held in which the person who received the lowest number of votes shall be ineligible 
for election and in which there shall vote only (a] those governors who voted in the 
first ballot for a person not elected, and (b) tin >se governors whose votes for a person 
elected are deemed under 4 below to have raised the votes cast for that person 
above twenty per cent of the eligible votes. 

4. In determining whether the votes cast by a governor are to be deemed to have 
raised the total of any person above twenty per cent of the eligible votes the twenty 
per cent shall be deemed to include, first, the votes of the governor casting the 
largest number of votes for such person, then the votes of the governoi casting the 
next largest number, and so on until twenty per cent is reached. 

5. Any governor part of whose votes must be counted in order to raise the total 
of any person above nineteen per cent shall be considered as casting all of his votes 
for such person even if the total votes for .such person thereby exceed twenty per 
cent. 

6. If, after the second ballot, five persons have not been elected, further ballots 
shall be held on the same principles until five persons have been elected, provided 
that after four persons are elected, the fifth may be elected by a simple majority 
of the remaining votes and shall be deemed to have been elected by all such votes. 

7. The directors to be elected by the American Republics under Article XII, 
Section 3 (b) (iv) shall be elected as follows: 

(a) Each of the directors shall be elected separately. 

(b) In the election of the first director, each governor representing an American 
Republic eligible to participate in the election shall cast for one person all the 
votes to which he is entitled. The person receiving the largest number of votes 
shall be elected provided that he has received not less than forty-five per cent 
of the total votes. 

(c) If no person is elected on the first ballot further ballots shall be held, in each 
of which the person receiving the lowest number of votes shall be eliminated, 
until one person receives a number of votes sufficient for election under (b) 
above. 

(d) Governors whose votes contributed to the election of the first director shall 
take no part in the election of the second director. 

(e) Persons who did not succeed in the first election shall not be ineligible for 
election as the second director. 

(/) A majority of the votes which can be cast shall be required for election of the 
second director. If at the first ballot no person receives a majority, further 

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6RETTON WOODS 

ballots shall be held in each of which the person receiving the lowest number 
of votes shall be eliminated, until some person obtains a majority. 
(g) The second director shall be deemed to have been elected by all the votes 
which could have been cast in the ballot securing his election. 



ANNEX B 

ARTICLES OF AGREEMENT OF THE INTERNATIONAL BANK 
FOR RECONSTRUCTION AND DEVELOPMENT 

The Governments on whose behalf the present Agreement is 
signed agree as follows: 

INTRODUCTORY ARTICLE 

The International Bank for Reconstruction and Development is 
established and shall operate in accordance with the following 
provisions: 

Article I 
PURPOSES 

The purposes of the Bank are : 

(i) To assist in the reconstruction and development of territories 
of members by facilitating the investment of capital for pro- 
ductive purposes, including the restoration of economies 
destroyed or disrupted by war, the reconversion of productive 
facilities to peacetime needs and the encouragement of the 
development of productive facilities and resources in less 
developed countries. 

(ii) To promote private foreign investment by means of guaran- 
tees or participations in loans and other investments made by 
private investors; and when private capital is not available on 
reasonable terms, to supplement private investment by pro- 
viding, on suitable conditions, finance for productive pur- 
poses out of its own capital, funds raised by it and its other 
resources. 

(iii) To promote the long-range balanced growth of international 
trade and the maintenance of equilibrium in balances of pay- 
ments by encouraging international investment for the de- 
velopment of the productive resources of members, thereby 
assisting in raising productivity, the standard of living and 
conditions of labour in their territories. 

(iv) To arrange the loans made or guaranteed by it in relation 
to international loans through other channels so that the 
more useful and urgent projects, large and small alike, will 
be dealt with first. 
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(v) To conduct its operations with due regard to the effect of 
international investment on business conditions in the ter- 
ritoi ies of members and, in the immediate post-war years, to 
assist in bringing about a smooth transition from a war-time 
to a peace-time economy. 

The Bank shall be guided in all its decisions by the purposes set 
forth above. 

Article II 

MEMBERSHIP IN AND CAPITAL OF THE BANK 

Section i. Membership 

(a) The original members of the Bank shall be those members of 
the International Monetary Fund which accept membership in 
the Bank before the date specified in Article XI, Section 2 (e). 

(/;) Membership shall be open to other members of the Fund, at 
such times and in accordance with such terms as may be prescribed 
by the Bank. 

Section 2. Authorized capital 

(a) The authorized capital stock of the Bank shall be $10,000 
millions, in terms of United States dollars of the weight and fineness 
in effect on July i, 1944. The capital stock shall be divided into 
100,000 shares having a par value of $100,000 each, which shall be 
available for subscription only by members. 

(/;) The capital stock may be increased when the Bank deems it 
advisable by a three-fourths majority of the total voting power. 

Section 3. Subscription of shares 

(a) Each member shall subscribe shares of the capital stock of the 
Bank. The minimum number of shares to be subscribed by the origi- 
nal members shall be those set forth in Schedule A. The minimum 
number of shares to be subscribed by other members shall be deter- 
mined by the Bank, which shall reserve a sufficient portion of its 
capital stock for subscription by such members. 

(6) The Bank shall prescribe rules laying down the conditions 
under which members may subscribe shares of the authorized 
capital stock of the Bank in addition to their minimum subscriptions. 

(c) If the authorized capital stock of the Bank is increased, each 
member shall have a reasonable opportunity to subscribe, under 
such conditions as the Bank shall decide, a proportion of the increase 
of stock equivalent to the proportion which its stock theretofore 
subscribed bears to the total capital stock of the Bank, but no mem- 
ber shall be obligated to subscribe any part of the increased capital. 

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Section 4. Issue price of shares 

Shares included in the minimum subscriptions of original mem- 
bers shall be issued at par. Other shares shall be issued at par unless 
the Bank by a majority of the total voting power decides in special 
circumstances to issue them on other terms. 

Section 5. Division and calls of subscribed capital 

The subscription of each member shall be divided into two parts 
as follows: 

(i) twenty per cent shall be paid or subject to call under Section 

7 (i) of this Article as needed by the Bank for its operations; 

(ii) the remaining eighty per cent shall be subject to call by the 

Bank only when required to meet obligations of the Bank 

created under Article IV, Section i (a) (ii) and (iii). 

Galls on unpaid subscriptions shall be uniform on all shares. 

Section 6. Limitation on liability 

Liability on shares shall be limited to the unpaid portion of the 
issue price of the shares. 

Section 7. Method of payment of subscriptions for shares 

Payment of subscriptions for shares shall be made in gold or 
United States dollars and in the currencies of the members as follows: 

(i) under Section 5 (i) of this Article, two per cent of the price of 
each share shall be payable in gold or United States dollars, 
and, when calls are made, the remaining eighteen per cent 
shall be paid in the currency of the member; 
(ii) when a call is made under Section 5 (ii) of this Article, pay- 
ment may be made at the option of the member either in 
gold, United States dollars or in the currency required to 
discharge the obligations of the Bank for the purpose for 
which the call is made; 

(iii) when a member makes payments in any currency under (i) 
and (ii) above, such payments shall be made in amounts 
equal in value to the member's liability under the call. This 
liability shall be a proportionate part of the subscribed 
capital stock of the Bank as authorized and defined in Section 
2 of this Article. 

Section 8. Time of payment of subscriptions 

(a) The two per cent payable on each share in gold or United 
States dollars under Section 7 (i) of this Article, shall be paid within 
sixty days of the date on which the Bank begins operations, provided 



BRETTON WOODS 

that (i) any original member of the Bank whose metropolitan ter- 
ritory has suffered from enemy occupation or hostilities during the 
present war shall be granted the right to postpone payment of one- 
half per cent until five years after that date; (ii) an original member 
who cannot make such a payment because it has not recovered 
possession of its gold reserves which are still seized or immobilized as 
a result of the war may postpone all payment until such date as the 
Bank may decide. 

(b) The remainder of the price of each share payable under 
Section 7 (i) of this Article shall be paid as and when called by the 
Bank, provided that 

(i) the Bank shall, within one year of its beginning operations, call 
not less than eight per cent of the price of the share in addition 
to the payment of two per cent referred to in (a) above: 

(ii) not more than five per cent of the price of the share shall be 
called in any period of three months. 

Section 9. Maintenance of value of certain currency holdings of the 
Bank 

(a) Whenever (i) the par value of a member's currency is reduced, 
or (ii) the foreign exchange value of a member's currency has, in the 
opinion of the Bank, depreciated to a significant extent within that 
member's territories, the member shall pay to the Bank within a 
reasonable time an additional amount of its own currency sufficient 
to maintain the value, as of the time of initial subscription, of the 
amount of the currency of such member, which is held by the Bank 
and derived from currency originally paid in to the Bank by the 
member under Article II, Section 7 (i), from currency referred to in 
Article IV, Section 2 (b), or from any additional currency furnished 
under the provisions of the present paragraph, and which has not 
been re-purchased by the member for gold or for the currency of any 
member which is acceptable to the Bank. 

(b) Whenever the par value of a member's currency is increased, 
the Bank shall return to such member within a reasonable time an 
amount of that member's currency equal to the increase in the value 
of the amount of such currency described in (a) above. 

(c) The provisions of the preceding paragraphs may be waived by 
the Bank when a uniform proportionate change in the par values of 
the currencies of all its members is made by the International Mone- 
tary Fund. 

Section 10. Restriction on disposal of shares 

Shares shall not be pledged or encumbered in any manner what- 
ever and they shall be transferable only to the Bank, 

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Article HI 

GENERAL PROVISIONS RELATING TO LOANS AND GUARANTEES 

Section i . Use of resources 

(a) The resources and the facilities of the Bank shall be used ex- 
clusively for the benefit of members with equitable consideration to 
projects for development and projects for reconstruction alike. 

(b) For the purpose of facilitating the restoration and reconstruc- 
tion of the economy of members whose metropolitan territories have 
suffered great devastation from enemy occupation or hostilities, the 
Bank, in determining the conditions and terms of loans made to such 
members, shall pay special regard to lightening the financial burden 
and expediting the completion of such restoration and reconstruction. 

Section 2. Dealings between members and the Bank 

Each member shall deal with the Bank only through its Treasury, 
central bank, stabilization fund or other similar fiscal agency, and 
the Bank shall deal with members only by or through the same 
agencies. 

Section 3. Limitations on guarantees and borrowings of the Bank 

The total amount outstanding of guarantees, participations in 
loans and direct loans made by the Bank shall not be increased at 
any time, if by such increase the total would exceed one hundred 
per cent of the unimpaired subscribed capital, reserves and surplus 
of the Bank. 

Section 4. Conditions on which the Bank may guarantee or make loans 
The Bank may guarantee, participate in, or make loans to any 
member or any political sub-division thereof and any business, in- 
dustrial, and agricultural enterprise in the territories of a member, 
subject to the following conditions. 

1 . When the member in whose territories the project is located 
is not itself the borrower, the member or the central bank or some 
comparable agency of the Member which is acceptable to the 
Bank, fully guarantees the repayment of the principal and the 
payment of interest and other charges on the loan. 

2. The Bank is satisfied that in the prevailing market conditions 
the borrower would be unable otherwise to obtain the loan under 
conditions which in the opinion of the Bank are reasonable for the 
borrower. 

3. A competent committee, as provided for in Article V, Sec- 
tion 7, has submitted a written report recommending the project 
after a careful study of the merits of the proposal. 

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BRETTON WOODS 

4. In the opinion of the Bank the rate of interest and other 
charges are reasonable and such rate, charges and the schedule 
for repayment of principal are appropriate to the project. 

5. In making or guaranteeing a loan, the Bank shall pay due 
regard to the prospects that the borrower, and, if the borrower is 
not a member, that the guarantor, will be in a position to meet its 
obligations under the loan; and the Bank shall act prudently in 
the interests both of the particular member in whose territories 
the project is located and of the members as a whole. 

6. In guaranteeing a loan made by other investors, the Bank 
receives suitable compensation for its risk. 

7. Loans made or guaranteed by the Bank shall, except in 
special circumstances, be for the purpose of specific projects of 
reconstruction or development. 

Section 5. Use of loans guaranteed, participated in or made by the 
Bank 

(a) The Bank shall impose no conditions that the proceeds of a 
loan shall be spent in the territories of any particular member or 
members. 

(b) The Bank shall make arrangements to ensure that the pro- 
ceeds of any loan are used only for the purposes for which the loan 
was granted, with due attention to considerations of economy and 
efficiency and without regard to political or other non-economic 
influences or considerations. 

(c) In the case of loans made by the Bank, it shall open an account 
in the name of the borrower and the amount of the loan shall be 
credited to this account in the currency or currencies in which the 
loan is made. The borrower shall be permitted by the Bank to 
draw on this account only to meet expenses in connection with 
the project as they are actually incurred. 



Article IV 

OPERATIONS 

Section i . Methods of making or facilitating loans 

(a) The Bank may make or facilitate loans which satisfy the 
general conditions of Article III in any of the following ways: 

(i) By making or participating in direct loans out of its own 

funds corresponding to its unimpaired paid-up capital, 

surplus and, subject to Section 6 of this Article, to its 

reserves. 

(ii) By making or participating in direct loans out of funds raised 

70 



BRETTON WOODS 

in the market of a member, or otherwise borrowed by the 
Bank. 

(iii) By guaranteeing in whole or in part loans made by private 
investors through the usual investment channels. 

(b) The Bank may borrow funds under (a) (ii) above or guarantee 
loans under (a) (iii) above only with the approval of the member 
in whose markets the funds are raised and the member in whose cur- 
rency the loan is denominated, and only if those members agree 
that the proceeds may be exchanged for the currency of any other 
member without restriction. 

Section 2. Availability and transferability of currencies 

(a) Currencies paid into the Bank under Article II, Section 7 (i), 
shall be loaned only with the approval in each case of the member 
whose currency is involved; provided, however, that if necessary, 
after the Bank's subscribed capital has been entirely called, such 
currencies shall, without restriction by the members whose currencies 
are offered, be used or exchanged for the currencies required to 
meet contractual payments of interest, other charges or amortiza- 
tion 011 the Bank's own borrowings, or to meet the Bank's liabilities 
with respect to such contractual payments on loans guaranteed by 
the Bank. 

(b) Currencies received by the Bank from borrowers or guarantors 
in payment on account of principal of direct loans made with cur- 
rencies referred to in (a) above shall be exchanged for the currencies 
of other members or rcloaned only with the approval in each case 
of the members whose currencies are involved; provided, however, 
that if necessary, after the Bank's subscribed capital has been en- 
tirely called, such currencies shall, without restriction by the mem- 
bers whose currencies are offered, be used or exchanged for the 
currencies required to meet contractual payments of interest, other 
charges or amortization on the Bank's own borrowings, or to meet 
the Bank's liabilities with respect to such contractual payments on 
loans guaranteed by the Bank. 

(c) Currencies received by the Bank from borrowers or guarantors 
in payment on account of principal of direct loans made by the 
Bank under Section i (a) (ii) of this Article, shall be held and used 
without restriction by the members to make amortization payments, 
or to anticipate payment of or repurchase part or all of the Bank's 
own obligations. 

(d) All other currencies available to the Bank, including those 
raised in the market or otherwise borrowed under Section i (a) (ii) 
of this Article, those obtained by the sale of gold, those received as 
payments of interest and other charges for direct loans made under 



BRETTON WOODS 

Sections i (a) (i) and (ii), and those received as payments of com- 
missions and other charges under Section i (a) (iii), shall be used or 
exchanged for other currencies or gold required in the operations of 
the Bank without restriction by the members whose currencies are 
offered. 

(e) Currencies raised in the markets of members by borrowers on 
loans guaranteed by the Bank under Section i (a) (iii) of this Article, 
shall also be used or exchanged for other currencies without re- 
striction by such members. 

Section 3. Provision of currencies for direct loans 

The following provisions shall apply to direct loans under Sections 
i (a) (i) and (ii) of this Article: 

(a) The Bank shall furnish the borrower with such currencies of 
members other than the member in whose territories the pro- 
ject is located as are needed by the borrower for expenditures 
to be made in the territories of such other members to carry 
out the purposes of the loan. 

(b) The Bank may, in exceptional circumstances when local 
currency required for the purposes of the loan cannot be 
raised by the borrower on reasonable terms, provide the bor- 
rower as part of the loan with an appropriate amount of that 
currency. 

(c) The Bank, if the project gives rise indirectly to an increased 
need for foreign exchange by the member in whose territories 
the project is located, may in exceptional circumstances 
provide the borrower as part of the loan with an appropriate 
amount of gold or foreign exchange not in excess of the 
borrower's local expenditure in connection with the purposes 
of the loan. 

(d) The Bank may, in exceptional circumstances, at the request 
of a member in whose territories a portion of the loan is 
spent, repurchase with gold or foreign exchange a part of 
that member's currency thus spent but in no case shall the 
part so repurchased exceed the amount by which the ex- 
penditure of the loan in those territories gives rise to an in- 
creased need for foreign exchange. 

Section 4. Payment provisions for direct loans 

Loan contracts under Section i (a) (i) or (ii) of this Article shall be 
made in accordance with the following payment provisions: 

(a) The terms and conditions of interest and amortization pay- 
ments, maturity and dates of payment of each loan shall be 

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BRETTON WOODS 

determined by the Bank. The Bank shall also determine the rate 
and any other terms and conditions of commission to be charged in 
connection with such loan. 

In the case of loans made under Section i (a) (ii) of this Article 
during the first ten years of the Bank's operations, this rate of com- 
mission shall be not less than one per cent per annum and not greater 
than one and one-half per cent per annum, and shall be charged on 
the outstanding portion of any such loan. At the end of this period of 
ten years, the rate of commission may be reduced by the Bank with 
respect both to the outstanding portions of loans already made and 
to future loans, if the reserves accumulated by the Bank under 
Section 6 of this Article and out of other earnings arc considered by 
it sufficient to justify a reduction. In the case of future loans the 
Bank shall also have discretion to increase the rate of commission 
beyond the above limit, if experience indicates that an increase is 
advisable. 

(b) All loan contracts shall stipulate the currency or currencies in 
which payments under the contract shall be made to the Bank. 
At the option of the borrower, however, such payments may be 
made in gold, or subject to the agreement of the Bank, in the currency 
of a member other than that prescribed in the contract. 

(i) In the case of loans made under Section i (a) (i) of this Ar- 
ticle, the loan contracts shall provide that payments to the 
Bank of interest, other charges and amortization shall be made 
in the currency loaned, unless the member whose currency is 
loaned agrees that such payments shall be made in some other 
specified currency or currencies. These payments, subject to 
the provisions of Article II, Section 9 (<;), shall be equivalent 
to the value of such contractual payments at the time the 
loans were made, in terms of a currency specified for the pur- 
pose by the Bank by a three-fourths majority of the total 
voting power. 

(ii) In the case of loans made under Section i (a) (ii) of this Ar- 
ticle, the total amount outstanding and payable to the Bank in 
any one currency shall at no time exceed the total amount of 
the outstanding borrowings made by the Bank under Section 
i (a) (ii) and payable in the same currency. 

(c) If a member suffers from an acute exchange stringency, so that 
the service of any loan contracted by that member or guaranteed by 
it or by one of its agencies cannot be provided in the stipulated 
manner, the member concerned may appeal to the Bank for a re- 
laxation of the conditions of payment. If the Bank is satisfied that 
some relaxation is in the interests of the particular member and of 

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BRETTON WOODS 

the operations of the Bank and of its members as a whole, it may 
take action under either, or both, of the following paragraphs with 
respect to the whole, or part, of the annual service: 

(i) The Bank may, in its discretion, make arrangements with the 
member concerned to accept service payments on the loan 
in the member's currency for periods not to exceed three years 
upon appropriate terms regarding the use of such currency 
and the maintenance of its foreign exchange value; and for the 
repurchase of such currency on appropriate terms. 
(ii) The Bank may modify the terms of amortization or extend the 
life of the loan, or both. 

Section 5. Guarantees 

(a) In guaranteeing a loan placed through the usual investment 
channels, the Bank shall charge a guarantee commission payable 
periodically on the amount of the loan outstanding at a rate deter- 
mined by the Bank. During the first ten years of the Bank's opera- 
tions, this rate shall be not less than one per cent per annum and not 
greater than one and one-half per cent per annum. At the end of 
this period of ten years, the rate of commission may be reduced by 
the Bank with respect both to the outstanding portions of loans 
already guaranteed and to future loans if the reserves accumulated 
by the Bank under Section 6 of this Article and out of other earnings 
are considered by it sufficient to justify a reduction. In the case of 
future loans the Bank shall also have discretion to increase the rate 
of commission beyond the above limit, if experience indicates that 
an increase is advisable. 

(b) Guarantee commissions shall be paid directly to the Bank by 
the borrower. 

(c) Guarantees by the Bank shall provide that the Bank may 
terminate its liability with respect to interest if, upon default by the 
borrower and by the guarantor, if any, the Bank offers to purchase, 
at par and interest accrued to a date designated in the offer, the 
bonds or other obligations guaranteed. 

(d) The Bank shall have power to determine any other terms and 
conditions of the guarantee. 

Section 6. Special reserve 

The amount of commissions received by the Bank under Sections 
4 and 5 of this Article shall be set aside as a special reserve, which 
shall be used only for meeting liabilities of the Bank in accordance 
with Section 7 of this Article. The special reserve shall be held in 
such liquid form, permitted under this Agreement, as the Executive 
Directors may decide. 

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BRETTON WOODS 

Section 7. Methods of meeting liabilities of the Bank in case of 

defaults 

In cases of default on loans made, participated in, or guaranteed 
by the Bank: 

(a) The Bank shall make such arrangements as may be feasible to 
adjust the obligations under the loans, including arrange- 
ments under or analogous to those provided in Section 4 (c) 
of this Article. 

(b) The payments in discharge of the Bank's liabilities on borrow- 
ings or guarantees under Sections i (a) (ii) and (iii) of this 
Article shall be charged: 

(i) first, against the special reserve provided in Section 6 of 

this Article; 

(ii) then, to the extent necessary and at the discretion of the 
Bank, against the other reserves, surplus and capital 
available to the Bank. 

(c) Whenever necessary to meet contractual payments of in- 
terest, other charges or amortization on the Bank's own 
borrowings, or to meet the Bank's liabilities with respect to 
similar payments on loans guaranteed by the Bank, the Bank 
may call an appropriate amount of the unpaid subscriptions 
of members in accordance with Article II, Sections 5 and 7. 
Moreover, if it believes that a default may be of long dura- 
tion, the Bank may call an additional amount of such unpaid 
subscriptions not to exceed in any one year one per cent 
of the total subscriptions of the members for the following 
purposes: 

(i) To redeem prior to maturity or otherwise discharge its 
liability on all or part of the outstanding principal of any 
loan guaranteed by it in respect of which the debtor is in 
default. 

(ii) To repurchase or otherwise discharge its liability on all or 
part of its own outstanding borrowings. 

Section 8. Miscellaneous operations 

In addition to the operations specified elsewhere in this Agree- 
ment, the Bank shall have the power: 

(i) To buy and sell securities it has issued and to buy and sell 
securities which it has guaranteed or in which it has invested, 
provided that the Bank shall obtain the approval of the 
member in whose territories the securities are to be bought 
or sold. 

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BRETTON WOODS 

(ii) To guarantee securities in which it has invested for the pur- 
pose of facilitating their sale. 

(iii) To borrow the currency of any member with the approval of 
that member. 

(iv) To buy and sell such other securities as the Directors by a 
three-fourths majority of the total voting power may deem 
proper for the investment of all or part of the special reserve 
under Section 6 of this Article. 

In exercising the powers conferred by this Section, the Bank may 
deal with any person, partnership, association, corporation or other 
legal entity in the territories of any member. 

Section 9. Warning to be placed on securities 

Every security guaranteed or issued by the Bank shall bear on its 
face a conspicuous statement to the effect that it is not an obligation 
of any government unless expressly stated on the security. 

Section 10. Political activity prohibited 

The Bank and its officers shall not interfere in the political affairs 
of any member; nor shall they be influenced in their decisions by the 
political character of the member or members concerned. Only 
economic considerations shall be relevant to their decisions, and 
these considerations shall be weighed impartially in order to achieve 
the purposes stated in Article I. 

Article V 

ORGANIZATION AND MANAGEMENT 

Section i. Structure of the Bank 

The Bank shall have a Board of Governors, Executive Directors, a 
President and such other officers and staff to perform such duties as 
the Bank may determine. 

Section 2. Board of Governors 

(a) All the powers of the Bank shall be vested in the Board of 
Governors consisting of one governor and one alternate appointed 
by each member in such manner as it may determine. Each governor 
and each alternate shall serve for five years, subject to the pleasure of 
the member appointing him, and may be reappointed. No alternate 
may vote except in the absence of his principal. The Board shall 
select one of the governors as Chairman. 

() The Board of Governors may delegate to the Executive Direc- 
tors authority to exercise any powers of the Board, except the power 
to: 

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BRETTON WOODS 

(i) Admit new members and determine the conditions of their 
admission; 

(ii) Increase or decrease the capital stock; 

(iii) Suspend a member; 

(iv) Decide appeals from interpretations of this Agreement given 
by the Executive Directors; 

(v) Make arrangements to co-operate with other international 
organizations (other than informal arrangements of a tem- 
porary and administrative character); 

(vi) Decide to suspend permanently the operations of the Bank 
and to distribute its assets; 

(vii) Determine the distribution of the net income of the Bank. 

(c) The Board of Governors shall hold an annual meeting and such 
other meetings as may be provided for by the Board or called by the 
Executive Directors. Meetings of the Board shall be called by the 
Directors whenever requested by five members or by members 
having one-quarter of the total voting power. 

(d) A quorum for any meeting of the Board of Governors shall be 
a majority of the Governors, exercising not less than two-thirds of the 
total voting power. 

(e) The Board of Governors may by regulation establish a pro- 
cedure whereby the Executive Directors, when they deem such 
action to be in the best interests of the Bank, may obtain a vote of 
the Governors on a specific question without calling a meeting of 
the Board. 

(/) The Board of Governors, and the Executive Directors to the 
extent authorized, may adopt such rules and regulations as may be 
necessary or appropriate to conduct the business of the Bank. 

(g) Governors and alternates shall serve as such without compen- 
sation from the Bank, but the Bank shall pay them reasonable ex- 
penses incurred in attending meetings. 

(ti) The Board of Governors shall determine the remuneration to 
be paid to the Executive Directors and the salary and terms of the 
contract of service of the President. 

Section 3. Voting 

(a) Each member shall have two hundred and fifty votes plus one 
additional vote for each share of stock held. 

(b) Except as otherwise specifically provided, all matters before 
the Bank shall be decided by a majority of the votes cast. 

Section 4. Executive Directors 

(a) The Executive Directors shall be responsible for the conduct 
of the general operations of the Bank, and for this purpose, 

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shall exercise all the powers delegated to them by the Board of 
Governors. 

(b} There shall be twelve Executive Directors, who need not be 
governors, and of whom : 

(i) five shall be appointed, one by each of the five members 

having the largest number of shares; 

(ii) seven shall be elected according to Schedule B by all the 
Governors other than those appointed by the five members 
referred to in (i) above. 

For the purpose of this paragraph, "members" means governments 
of countries whose names are set forth in Schedule A, whether they 
are original members or become members in accordance with 
Article II, Section i (b). When governments of other countries be- 
come members, the Board of Governors may, by a four-fifths 
majority of the total voting power, increase the total number of 
Directors by increasing the number of Directors to be elected. 

Executive Directors shall be appointed or elected every two 
years. 

(c) Each Executive Director shall appoint an alternate with full 
power to act for him when he is not present. When the Executive 
Directors appointing them are present, alternates may participate 
in meetings but shall not vote. 

(d) Directors shall continue in office until their successors are 
appointed or elected. If the office of an elected director becomes 
vacant more than ninety days before the end of his term, another 
director shall be elected for the remainder of the term by the Gover- 
nors who elected the former director. A majority of the votes cast 
shall be required for election. While the office remains vacant, the 
alternate of the former director shall exercise his powers, except that 
of appointing an alternate. 

(e) The Executive Directors shall function in continuous session at 
the principal office of the Bank and shall meet as often as the 
business of the Bank may require. 

(/) A quorum for any meeting of the Executive Directors shall be a 
majority of the Directors, exercising not less than one-half of the 
total voting power. 

(g} Each appointed Director shall be entitled to cast the number 
of votes allotted under Section 3 of this Article to the member ap- 
pointing him. Each elected Director shall be entitled to cast the 
number of votes which counted towards his election. All the votes 
which a Director is entitled to cast shall be cast as a unit. 

(h) The Board of Governors shall adopt regulations under which 
a member not entitled to appoint a Director under (b) above 

78 



BRETTON WOODS 

may send a representative to attend any meeting of the Executive 
Directors at which a request made by, or a matter particularly affect- 
ing, that member is under consideration. 

(i) The Executive Directors may appoint such committees as they 
deem advisable. Membership of such committees need not be limited 
to Governors or Directors or their alternates. 

Section 5. President and staff 

(a) The Executive Directors shall select a President who shall not 
be a Governor or an Executive Director or an alternate for either. 
The President shall be Chairman of the Executive Directors, but 
shall have no vote except a deciding vote in case of an equal division. 
He may participate in meetings of the Board of Governors, but shall 
not vote at such meetings. The President shall cease to hold office 
when the Executive Directors so decide. 

(b) The President shall be chief of the operating staff of the Bank 
and shall conduct, under the direction of the Executive Directors, 
the ordinary business of the Bank. Subject to the general control of 
the Executive Directors, he shall be responsible for the organization, 
appointment and dismissal of the officers and staff. 

(c) The President, officers and staff of the Bank, in the discharge 
of their offices, owe their duty entirely to the Bank and to no other 
authority. Each member of the Bank shall respect the international 
character of this duty and shall refrain from all attempts to influence 
any of them in the discharge of their duties. 

(d) In appointing the officers and staff the President shall, subject 
to the paramount importance of securing the highest standards of 
efficiency and of technical competence, pay due regard to the; im- 
portance of recruiting personnel on as wide a geographical basis as 
possible. 

Section 6. Advisory Council 

(a) There shall be an Advisory Council of not less than seven 
persons selected by the Board of Governors including representatives 
of banking, commercial, industrial, labour, and agricultural in- 
terests, and with as wide a national representation as possible. In 
those fields where specialized international organizations exist, the 
members of the Council representative of those fields shall be selected 
in agreement with such organizations. The Council shall advise the 
Bank on matters of general policy. The Council shall meet annually 
and on such other occasions as the Bank may request. 

(b) Councillors shall serve for two years and may be reappointed. 
They shall be paid their reasonable expenses incurred on behalf of 
the Bank. 

79 



BRETTON WOODS 

Section 7. Loan Committees 

The committees required to report on loans under Article III, 
Section 4, shall be appointed by the Bank. Each such committee 
shall include an expert selected by the Governor representing the 
member in whose territories the project is located and one or more 
members of the technical staff of the Bank. 

Section 8. Relationship to other international organizations 

(a) The Bank, within the terms of this Agreement, shall co-operate 
with any general international organization and with public inter- 
national organizations having specialized responsibilities in related 
fields. Any arrangements for such co-operation which would involve 
a modification of any provision of this Agreement may be effected 
only after amendment to this Agreement under Article VIII. 

(b) In making decisions on applications for loans or guarantees 
relating to matters directly within the competence of any inter- 
national organization of the types specified in the preceding para- 
graph and participated in primarily by members of the Bank, the 
Bank shall give consideration to the views and recommendations of 
such organization. 

Section 9. Location of offices 

(a) The principal office of the Bank shall be located in the ter- 
ritory of the member holding the greatest number of shares. 

(b) The Bank may establish agencies or branch offices in the ter- 
ritories of any member of the Bank. 

Section 10. Regional offices and councils 

(a) The Bank may establish regional offices and determine the 
location of, and the areas to be covered by, each regional office. 

(b) Each regional office shall be advised by a regional council 
representative of the entire area and selected in such manner as the 
Bank may decide. 

Section 11. Depositories 

(a) Each member shall designate its central bank as a depository 
for all the Bank's holdings of its currency or, if it has no central bank, 
it shall designate such other institution as may be acceptable to the 
Bank. 

(b) The Bank may hold other assets, including gold, in depositories 
designated by the five members having the largest number of shares 
and in such other designated depositories as the Bank may select. 
Initially, at least one-half of the gold holdings of the Bank shall be 
held in the depository designated by the member in whose territory 

80 



BRETTON WOODS 

the Bank has its principal office, and at least forty per cent shall be 
held in the depositories designated by the remaining four members 
referred to above, each of such depositories to hold, initially, not 
less than the amount of gold paid on the shares of the member 
designating it. However, all transfers of gold by the Bank shall be 
made with due regard to the costs of transport and anticipated re- 
quirements of the Bank. In an emergency the Executive Directors 
may transfer all or any part of the Bank's gold holdings to any place 
where they can be adequately protected. 

Section 12. Form of holdings of currency 

The Bank shall accept from any member, in place of any part of 
the member's currency, paid in to the Bank under Article II, 
Section 7 (i), or to meet amortization payments on loans made with 
such currency, and not needed by the Bank in its operations, notes 
or similar obligations issued by the Government of the member or 
the depository designated by such member, which shall be non- 
negotiable, non-intcrest-bearing and payable at their par value on 
demand by credit to the account of the Bank in the designated de- 
pository. 

Section 13. Publication of reports and provision of information 

(a) The Bank shall publish an annual report containing an audited 
statement of its accounts and shall circulate to members at in- 
tervals of three months or less a summary statement of its financial 
position and a profit and loss statement showing the results of its 
operations. 

(b) The Bank may publish such other reports as it deems desirable 
to carry out its purposes. 

(c) Copies of all reports, statements and publications made under 
this section shall be distributed to members. 

Section 14. Allocation of net income 

(a) The Board of Governors shall determine annually what part of 
the Bank's net income, after making provision for reserves, shall be 
allocated to surplus and what part, if any, shall be distributed. 

(b) If any part is distributed, up to two per cent non-cumulative 
shall be paid, as a first charge against the distribution for any year, 
to each member on the basis of the average amount of the loans 
outstanding during the year made under Article IV, Section i (a) 
(i), out of currency corresponding to its subscription. If two per cent 
is paid as a first charge, any balance remaining to be distributed 
shall be paid to all members in proportion to their shares. Payments 
to each member shall be made in its own currency, or if that currency 

f 81 



BRETTON WOODS 

is not available in other currency acceptable to the member. If such 
payments are made in currencies other than the member's own 
currency, the transfer of the currency and its use by the receiving 
member after payment shall be without restriction by the members. 

Article VI 

WITHDRAWAL AND SUSPENSION OF MEMBERSHIP: SUSPENSION OF 
OPERATIONS 

Section i . Right of members to withdraw 

Any member may withdraw from the Bank at any time by trans- 
mitting a notice in writing to the Bank at its principal office. With- 
drawal shall become effective on the date such notice is received. 

Section 2. Suspension of membership 

If a member fails to fulfil any of its obligations to the Bank, the 
Bank may suspend its membership by decision of a majority of the 
Governors, exercising a majority of the total voting power. The 
member so suspended shall automatically cease to be a member one 
year from the date of its suspension unless a decision is taken by the 
same majority to restore the member to good standing. 

While under suspension, a member shall not be entitled to exercise 
any rights under this Agreement, except the right of withdrawal, 
but shall remain subject to all obligations. 

Section 3. Cessation of membership in International Monetary 

Fund 

Any member which ceases to be a member of the International 
Monetary Fund shall automatically cease after three months to be a 
member of the Bank unless the Bank by three fourths of the total 
voting power has agreed to allow it to remain a member. 

Section 4. Settlement of accounts with governments ceasing to be 
members 

(a) When a government ceases to be a member, it shall remain 
liable for its direct obligations to the Bank and for its contingent 
liabilities to the Bank so long as any part of the loans or guarantees 
contracted before it ceased to be a member are outstanding; but it 
shall cease to incur liabilities with respect to loans and guarantees 
entered into thereafter by the Bank and to share either in the income 
or the expenses of the Bank. 

(b) At the time a government ceases to be a member, the Bank 
shall arrange for the repurchase of its shares as a part of the settle- 
ment of accounts with such government in accordance with the 

82 



BRETTON WOODS 

provisions of paragraphs (c) and (d) below. For this purpose the 
repurchase price of the shares shall be the value shown by the books 
of the Bank on the day the government ceases to be a member. 

(c) The payment for shares repurchased by the Bank under this 
section shall be governed by the following conditions: 

(i) Any amount due to the government for its share shall be 
withheld so long as the government, its central bank or any 
of its agencies remains liable, as borrower or guarantor, to the 
Bank and such amount may, at the option of the Bank, be 
applied on any such liability as it matures. No amount shall 
be withheld on account of the liability of the government 
resulting from its subscription for shares under Article II, 
Section 5 (ii). In any event, no amount due to a member for 
its shares shall be paid until six months after the date upon 
which the government ceases to be a member. 

(ii) Payments for shares may be made from time to time, upon 
their surrender by the government, to the extent by which the 
amount due as the repurchase price in (b) above exceeds the 
aggregate of liabilities on loans and guarantees in (c) (i) 
above until the former member has received the full re- 
purchase price. 

(iii) Payments shall be made in the currency of the country re- 
ceiving payment or at the option of the Bank in gold. 

(iv) If losses are sustained by the Bank on any guarantees, par- 
ticipations in loans, or loans which were outstanding on the 
date when the government ceased to be a member, and the 
amount of such losses exceeds the amount of the reserve pro- 
vided against losses on the date when the government ceased 
to be a member, such government shall be obligated to repay 
upon demand the amount by which the repurchase price of 
its shares would have bern reduced, if the losses had been 
taken into account when the repurchase price was deter- 
mined. In addition, the former member government shall 
remain liable on any call for unpaid subscriptions under 
Article II, Section 5 (ii) to the extent that it would have been 
required to respond if the impairment of capital had occurred 
and the call had been made at the time the repurchase price 
of its shares was determined. 

(d) If the Bank suspends permanently its operations under Sec- 
tion 5 (b) of this Article, within six months of the date upon which 
any government ceases to be a member, all rights of such govern- 
ment shall be determined by the provisions of Section 5 of this 
Article. 

83 



BRETTON WOODS 

Section 5. Suspension of operations and settlement of obligations 

(a) In an emergency the Executive Directors may suspend tem- 
porarily operations in respect of new loans and guarantees pending 
an opportunity for further consideration and action by the Board of 
Governors. 

(b) The Bank may suspend permanently its operations in respect 
of new loans and guarantees by vote of a majority of the Governors, 
exercising a majority of the total voting power. After such suspension 
of operations the Bank shall forthwith cease all activities, except 
those incident to the orderly realization, conservation, and preser- 
vation oi its assets and settlement of its obligations. 

(c) The liability of all members for uncalled subscriptions to the 
capital stock of the Bank and in respect of the depreciation of their 
own currencies shall continue until all claims of creditors, including 
all contingent claims, shall have been discharged. 

(d) All creditors holding direct claims shall be paid out of the 
assets of the Bank, and then out of payments to the Bank on calls on 
unpaid subscriptions. Before making any payments to creditors 
holding direct claims, the Executive Directors shall make such 
arrangements as are necessary, in their judgement, to insure a dis- 
tribution to holders of contingent claims ratably with creditors 
holding direct claims. 

(e) No distribution shall be made to members on account of their 
subscriptions to the capital stock of the Bank until 

(i) all liabilities to creditors have been discharged or provided 

for, and 

(ii) a majority of the Governors, exercising a majority of the total 
voting power, have decided to make a distribution. 

(/) After a decision to make a distribution has been taken under 
(e) above, the Executive Directors may by a two-thirds majority 
vote make successive distributions of the assets of the Bank to mem- 
bers until all of the assets have been distributed. This distribution 
shall be subject to the prior settlement of all outstanding claims of 
the Bank against each member. 

(g) Before any distribution of assets is made, the Executive Direc- 
tors shall fix the proportionate share of each member according to 
the ratio of its shareholding to the total outstanding shares of the 
Bank. 

(h) The Executive Directors shall value the assets to be distributed 
as at the date of distribution and then proceed to distribute in the 
following manner: 

(i) There shall be paid to each member in its own obligations or 
those of its official agencies or legal entities within its terri- 



BRETTON WOODS 

tories, in so far as they are available for distribution, an 
amount equivalent in value to its proportionate share of the 
total amount to be distributed. 

(ii) Any balance due to a member after payment has been made 
under (i) above shall be paid, in its own currency, in so far 
as it is held by the Bank, up to an amount equivalent in value 
to such balance. 

(iii) Any balance due to a member after payment has been made 
under (i) and (ii) above shall be paid, in gold or currency 
acceptable to the member, in so far as they are held by the 
Bank, up to an amount equivalent in value to such balance. 

(iv) Any remaining assets held by the Bank after payments have 
been made to members under (i), (ii), and (iii) above shall be 
distributed pro rata among the members. 

(f) Any member receiving assets distributed by the Bank in ac- 
cordance with (h) above, shall enjoy the same rights with respect to 
such assets as the Bank enjoyed prior to their distribution. 

Article VII 

STATUS, IMMUNITIES AND PRIVILEGES 

Section i. Purposes of Article 

To enable the Bank to fulfil the functions with which it is entrust- 
ed, the status, immunities and privileges set forth in this Article shall 
be accorded to the Bank in the territories of each member. 

Section 2. Status of the Bank 

The Bank shall possess full juridical personality, and, in particular, 
the capacity: 

(i) to contract; 

(ii) to acquire and dispose of immovable and movable property; 
(iii) to institute legal proceedings. 

Section 3. Position of the Bank with regard to judicial process 

Actions may be brought against the Bank only in a court of com- 
petent jurisdiction in the territories of a member in which the Bank 
has an office, has appointed an agent for the purpose of accepting 
service or notice of process, or has issued or guaranteed securities. 
No actions shall, however, be brought by members or persons acting 
for or deriving claims from members. The property and assets of the 
Bank shall, wheresoever located and by whomsoever held, be im- 
mune from all forms of seizure, attachment or execution before the 
delivery of final judgement against the Bank. 

85 



BRETTON WOODS 

Section 4. Immunity of assets from seizure 

Property and assets of the Bank, wherever located and by whom- 
soever held, shall be immune from search, requisition, confiscation, 
expropriation or any other form of seizure by executive or legislative 
action. 

Section 5. Immunity of archives 

The archives of the Bank shall be inviolable 

Section 6. Freedom of assets from restrictions 

To the extent necessary to carry out the operations provided for in 
this Agreement and subject to the provisions of this Agreement, all 
property and assets of the Bank shall be free from restrictions, regula- 
tions, controls and moratoria of any nature. 

Section 7. Privilege for communications 

The official communications of the Bank shall be accorded by 
each member the same treatment that it accords to the official 
communications of other members. 

Section 8. Immunities and privileges of officers and employees 

All governors, executive directors, alternates, officers and em- 
ployees of the Bank 

(i) shall be immune from legal process with respect to acts per- 
formed by them in their official capacity except when the 
Bank waives this immunity; 

(ii) not being local nationals, shall be accorded the same im- 
munities from immigration restrictions, alien registration re- 
quirements and national service obligations and the same 
facilities as regards exchange restrictions as are accorded by 
members to the representatives, officials, and employees of 
comparable rank of other members; 

(iii) shall be granted the same treatment in respect of travelling 
facilities as is accorded by members to representatives, officials 
and employees of comparable rank of other members. 

Section 9. Immunities from taxation 

(a) The Bank, its assets, property, income and its operations and 
transactions authorized by this Agreement, shall be immune from 
all taxation and from all customs duties. The Bank shall also be im- 
mune from liability for the collection or payment of any tax or duty. 

(b) No tax shall be levied on or in respect of salaries and emolu- 
ments paid by the Bank to executive directors, alternates, officials or 

86 



BRETTON WOODS 

employees of the Bank who are not local citizens, local subjects, or 
other local nationals. 

(c) No taxation of any kind shall be levied on any obligation or 
security issued by the Bank (including any dividend or interest 
thereon) by whomsoever held 

(i) which discriminates against such obligation or security solely 

because it is issued by the Bank; or 

(ii) if the sole jurisdictional basis for such taxation is the place or 
currency in which it is issued, made payable or paid, or the 
location of any office or place of business maintained by the 
Bank. 

(d) No taxation of any kind shall be levied on any obligation or 
security guaranteed by the Bank (including any dividend or interest 
thereon) by whomsoever held 

(i) which discriminates against such obligation or security solely 

because it is guaranteed by the Bank; or 
(ii) if the sole jurisdictional basis for such taxation is the location 

of any office or place of business maintained by the Bank. 

Section 10. Application of Article 

Each member shall take such action as is necessary in its own 
territories for the purpose of making effective in terms of its own law 
the principles set forth in this Article and shall inform the Bank of 
the detailed action which it has taken. 

Article VIII 

AMENDMENTS 

(a) Any proposal to introduce modifications in this Agreement, 
whether emanating from a member, a Governor or the Executive 
Directors, shall be communicated to the Chairman of the Board of 
Governors who shall bring the proposal before the Board. If the 
proposed amendment is approved by the Board the Bank shall, by 
circular letter or telegram, ask all members whether they accept 
the proposed amendment. When three-fifths of the members, having 
four-fifths of the total voting power, have accepted the proposed 
amendment, the Bank shall certify the fact by a formal communica- 
tion addressed to all members. 

(b) Notwithstanding (a) above, acceptance by all members is 
required in the case of any amendment modifying (i) the right to 
withdraw from the Bank provided in Article VI, Section i ; (ii) the 
right secured by Article II, Section 3 (c); (iii) the limitation on 
liability provided in Article II, Section 6. 

8? 



BRETTON WOODS 

(c) Amendments shall enter into force for all members three 
months after the date of the formal communication unless a shorter 
period is specified in the circular letter or telegram. 

Article IX 

INTERPRETATION 

(a) Any question of interpretation of the provisions of this Agree- 
ment arising between any member and the Bank or between any 
members of the Bank shall be submitted to the Executive Directors 
for their decision. If the question particularly affects any member not 
entitled to appoint an Executive Director, it shall be entitled to 
representation in accordance with Article V, Section 4 (h). 

(b) In any case where the Executive Directors have given a de- 
cision under (a) above, any member may require that the question 
be referred to the Board of Governors, whose decision shall be final. 
Pending the result of the reference to the Board, the Bank may so far 
as it deems necessary, act on the basis of the decision of the Executive 
Directors. 

(c) Whenever a disagreement arises between the Bank and a 
country which has ceased to be a member, or between the Bank and 
any member during the permanent suspension of the Bank, such 
disagreement shall be submitted to arbitration by a tribunal of three 
arbitrators, one appointed by the Bank, another by the country 
involved and an umpire who, unless the parties otherwise agree, 
shall be appointed by the President of the Permanent Court of 
International Justice or such other authority as may have been 
prescribed by regulation adopted by the Bank. The umpire shall 
have full power to settle all questions of procedure in any case where 
the parties are in disagreement with respect thereto. 

Article X 

APPROVAL DEEMED GIVEN 

Whenever the approval of any member is required before any act 
may be done by the Bank, except in Article VIII, approval shall 
be deemed to have been given unless the member presents an 
objection within such reasonable period as the Bank may fix in 
notifying the member of the proposed act. 

Article XI 

FINAL PROVISIONS 

Section i. Entry into force 

This Agreement shall enter into force when it has been signed on 
behalf of governments whose minimum subscriptions comprise not 

88 



BRETTON WOODS 

less than 65 per cent of the total subscriptions set forth in Schedule A 
and when the instruments referred to in Section 2 (a) of this Article 
have been deposited on their behalf, but in no event shall this Agree- 
ment enter into force before May i, 1945. 

Section 2. Signature 

(a) Each government on whose behalf this Agreement is signed 
shall deposit with the Government of the United States of America 
an instrument setting forth that it has accepted this Agreement in 
accordance with its law and has taken all steps necessary to enable it 
to carry out all of its obligations under this Agreement. 

(b) Each government shall become a member of the Bank as from 
the date of the deposit on its behalf of the instrument referred to in 
(a) above, except that no government shall become a member before 
this Agreement enters into force under Section i of this Article. 

(c) The Government of the United States of America shall inform 
the governments of all countries whose names are set forth in 
Schedule A, and all governments whose membership is approved in 
accordance with Article II, Section i (b), of all signatures of this 
Agreement and of the deposit of all instruments referred to in (a) 
above. 

(d) At the time this Agreement is signed on its behalf, each govern- 
ment shall transmit to the Government of the United States of 
America one one-hundredth of one per cent of the price of each share 
in gold or United States dollars for the purpose of meeting adminis- 
trative expenses of the Bank. This payment shall be credited on ac- 
count of the payment to be made in accordance with Article II, 
Section 8 (a). The Government of the United States of America 
shall hold such funds in a special deposit account and shall transmit 
them to the Board of Governors of the Bank when the initial meeting 
has been called under Section 3 of this Article. If this Agreement has 
not come into force by December 31, 1945, the Government of the 
United States of America shall return such funds to the governments 
that transmitted them. 

(e) This Agreement shall remain open for signature at Washington 
on behalf of the governments of the countries whose names are set 
forth in Schedule A until December 31, 1945. 

(/) After December 3 1 , 1945, this Agreement shall be open for sig- 
nature on behalf of the government of any country whose member- 
ship has been approved in accordance with Article II, Section i (b). 

(g) By their signature of this Agreement, all governments accept it 
both on their own behalf and in respect of all their colonies, overseas 
territories, all territories under their protection, suzerainty, or author- 
ity and all territories in respect of which they exercise a mandate. 

89 



BRETTON WOODS 

(h) In the case of governments whose metropolitan territories 
have been under enemy occupation, the deposit of the instrument 
referred to in (a) above may be delayed until one hundred and eighty 
days after the date on which these territories have been liberated. 
If, however, it is not deposited by any such government before the 
expiration of this period, the signature affixed on behalf of that 
government shall become void and the portion of its subscription 
paid under (d) above shall be returned to it. 

(i) Paragraphs (d) and (h) shall come into force with regard to 
each signatory government as from the date of its signature. 

Section 3. Inauguration of the Bank 

(a) As soon as this Agreement enters into force under Section i of 
this Article, each member shall appoint a governor and the member 
to whom the largest number of shares is allocated in Schedule A 
shall call the first meeting of the Board of Governors. 

(b) At the first meeting of the Board of Governors, arrangements 
shall be made for the selection of provisional Executive Directors. 
The governments of the five countries, to which the largest number 
of shares are allocated in Schedule A, shall appoint provisional 
Executive Directors. If one or more of such governments have not 
become members, the executive directorships which they would be 
entitled to fill shall remain vacant until they become members, or 
until January i, 1946, whichever is the earlier. Seven provisional 
Executive Directors shall be elected in accordance with the pro- 
visions of Schedule B and shall remain in office until the date of the 
first regular election of Executive Directors which shall be held as 
soon as practicable after January i, 1946. 

(c) The Board of Governors may delegate to the provisional Exe- 
cutive Directors any powers except those which may not be dele- 
gated to the Executive Directors. 

(d) The Bank shall notify members when it is ready to commence 
operations. 

DONE at Washington, in a single copy which shall remain de- 
posited in the archives of the Government of the United States of 
America which shall transmit certified copies to all governments 
whose names are set forth in Schedule A and to all governments 
whose membership is approved in accordance with Article II, 
Section i (b). 

SCHEDULE A 

Subscriptions (millions of dollars) 

Australia . . . . . . . . . . . . . . 200 

Belgium . . . . . . . . . . . . . . 225 

Bolivia 7 

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BRETTON WOODS 

(millions of dollars) 

Brazil . . . . . . . . . . . . . . 105 

Canada . . . . . . . . . . . . . . 325 

Chile 35 

China . . . . . . . . . . . . . . Coo 

Colombia . . . . . . . . . . . . . . 35 

Costa Rica . . . . . . . . . . . . 2 

Cuba 35 

Czechoslovakia . . . . . . . . . . . . 125 

Denmark . . . . . . . . . . . . . . 

Dominican Republic . . . . . . . . . . 2 

Ecuador . . . . . . . . . . . . . . 3-2 

Egypt 40 

El Salvador . . . . . . . . . . . . i 

Ethiopia . . . . . . . . . . . . . . 3 

France . . . . . . . . . . . . . . 450 

Greece . . . . . . . . . . . . . . 25 

Guatemala . . . . . . . . . . . . 2 

Haiti 2 

Honduras . . . . . . . . . . . . . . i 

Iceland . . . . . . . . . . . . . . i 

India . . . . . . . . . . . . . . 400 

Iran . . . . . . . . . . . . . . 24 

Iraq . . . . . . . . . . . . . . 6 

Liberia . . . . . . . . . . . . . . -5 

Luxembourg . . . . . . . . . . . . 10 

Mexico . . . . . . . . . . . . . . 65 

Netherlands 275 

New Zealand . . . . . . . . . . . . 50 

Nicaragua , . . . . . . . . . . . . . -8 

Norway . . . . . . . . . . . . . . 50 

Panama . . . . . . . . . . . . . . -2 

Paraguay . . . . . . . . . . . . . . -8 

Peru 17-5 

Philippine Commonwealth . . . . . . . . 15 

Poland 125 

Union of South Africa . . . . . . . . . . 100 

Union of Soviet Socialist Republics . . . . . . 1,200 

United Kingdom . . . . . . . . . . . . 1,300 

United States 3,175 

Uruguay . . . . . . . . . . . . . . 10-5 

Venezuela . . . . . . . . . . . . 10-5 

Yugoslavia . . . . . . . . . . . . 40 



Total 



9,100 



1 The quota of Denmark shall be determined by the Bank after Denmark accepts 
membership in accordance with these Articles of Agreement. 

9' 



BRETTON WOODS 

SCHEDULE B 

ELECTION OF EXECUTIVE DIRECTORS 

1. The election of the elective Executive Directors shall be by ballot of the 
Governors eligible to vote under Article V, Section 4 (b). 

2. In balloting for the elective Executive Directors, each Governor eligible to 
vote shall cast for one person all of the votes to which the member appointing him 
is entitled under Section 3 of Article V. The seven persons receiving the greatest 
number of votes shall be Executive Directors, except that no person who receives 
less than fourteen per cent of the total of the votes which can be cast (eligible 
votes) shall be considered elected. 

3. When seven persons are not elected on the first ballot, a second ballot shall be 
held in which the person who received the lowest number of votes shall be ineligible 
for election and in which there shall vote only (a) those Governors who voted in the 
first ballot for a person not elected and (b) those Governors whose votes for a person 
elected are deemed under 4 below to have raised the votes cast for that person 
above fifteen per cent of the eligible votes. 

4. In determining whether the votes cast by a Governor are to be deemed to have 
raised the total of any person above fifteen per cent of the eligible votes, the fifteen 
per cent shall be deemed to include, first, the votes of the Governor casting the 
largest number of votes for such person, then the votes of the Governor casting the 
next largest number, and so on until fifteen per cent is reached. 

5. Any Governor, part of whose votes must be counted in order to raise the total 
of any person above fourteen per cent, shall be considered as casting all of his votes 
for such person even if the total votes for such person thereby exceed fifteen per cent. 

6. If, after the second ballot, seven persons have not been elected, further ballots 
shall be held on the same principles until seven persons have been elected, provided 
that after six persons are elected, the seventh may be elected by a simple majority 
of the remaining votes and shall be deemed to have been elected by all such votes. 



DUMBARTON OAKS CONVERSATIONS ON WORLD 
ORGANIZATION 1 

August 21 October 7, 1944 

Conversations between United Kingdom, United States and Soviet 
Union officials regarding a possible World Organization were held 
at Dumbarton Oaks, Washington, between August 2 1 and Septem- 
ber 28, 1944. Conversations on the same subject between United 
Kingdom, United States and Chinese officials were held between 
September 29 and October 7. The following announcement was 
made by His Majesty's Government in the United Kingdom on 
October 9 regarding the outcome of both phases of the conversations. 
Identical communique's were issued on the same date by the other 
three Governments concerned: 

1 Cmd. 6560. 

92 



DUMBARTON OAKS 

"His Majesty's Government in the United Kingdom have now 
received the report of their Delegation to conversations held in 
Washington between August 2 1 and October 7 with the Delega- 
tions of the United States of America, the Union of Soviet Socialist 
Republics and the Republic of China for the maintenance of peace 
and security. 

2. There is annexed hereto a statement of tentative proposals 
indicating in detail the wide range of subjects on which agreement 
has been reached at the conversations. 

3. The Governments which were represented in the discussions 
in Washington have agreed that, after further study of these pro- 
posals, they will as soon as possible take the necessary steps with a 
view to the preparation of complete proposals which could then 
serve as a basis of discussion at a full United Nations conference." 

PROPOSALS FOR THE ESTABLISHMENT OF A GENERAL INTERNATIONAL 
ORGANIZATION 

There should be established an international organization under 
the title of The United Nations, the Charter of which should con- 
tain provisions necessary to give effect to the proposals which follow. 

CHAPTER I 
PURPOSES 
The purposes of the Organization should be: 

1. To maintain international peace and security; and to that end 
to take effective collective measures for the prevention and removal 
of threats to the peace and the suppression of acts of aggression or 
other breaches of the peace, and to bring about by peaceful means 
adjustment or settlement of international disputes which may lead 
to a breach of the peace; 

2. To develop friendly relations among nations and to take other 
appropriate measures to strengthen universal peace; 

3. To achieve international co-operation in the solution of inter- 
national economic, social and other humanitarian problems; and 

4. To afford a centre for harmonizing the actions of nations in the 
achievement of these common ends. 

CHAPTER II 
PRINCIPLES 

In pursuit of the purposes mentioned in Chapter I the Organiza- 
tion and its members should act in accordance with the following 
principles: 

93 



DUMBARTON OAKS 

1 . The Organization is based on the principle of the sovereign 
equality of all peace-loving States. 

2. All members of the Organization undertake, in order to ensure 
to all of them the rights and benefits resulting from membership in 
the Organization, to fulfil the obligations assumed by them in ac- 
cordance with the Charter. 

3. All members of the Organization shall settle their disputes by 
peaceful means in such a manner that international peace and se- 
curity are not endangered. 

4. All members of the Organization shall refrain in their inter- 
national relations from the threat or use of force in any manner in- 
consistent with the purposes of the Organization. 

5. All members of the Organization shall give every assistance to 
the Organization in any action undertaken by it in accordance with 
the provisions of the Charter. 

6. All members of the Organization shall refrain from giving 
assistance to any State against which preventive or enforcement 
action is being undertaken by the Organization. 

The Organization should ensure that States not members of the 
Organization act in accordance with these principles so far as may 
be necessary for the maintenance of international peace and security. 

CHAPTER III 

MEMBERSHIP 

Membership of the Organization should be open to all peace- 
loving States. 

CHAPTER IV 

PRINCIPAL ORGANS 

1. The Organization should have as its principal organs: 

(a) A General Assembly; 

(b) A Security Council; 

(c) An International Court of Justice; and 

(d) A Secretariat. 

2. The Organization should have such subsidiary agencies as may 
be found necessary. 

CHAPTER V 

THE GENERAL ASSEMBLY 

(A) Composition 

All members of the Organization should be members of the 
General Assembly and should have a number of representatives to 
be specified in the Charter. 

94 



DUMBARTON OAKS 

(B) Functions and Powers 

1. The General Assembly should have the right to consider the 
general principles of co-operation in the maintenance of internation- 
al peace and security including the principles governing disarma- 
ment and the regulation of armaments; to discuss any questions 
relating to the maintenance of international peace and security 
brought before it by any member or members of the Organization 
or by the Security Council; and to make recommendations with 
regard to any such principles or questions. Any such questions on 
which action is necessary should be referred to the Security Council 
by the General Assembly either before or after discussion. The 
General Assembly should not on its own initiative! make recom- 
mendations on any matter relating to the maintenance of inter- 
national peace and security which is being dealt with by the Se- 
curity Council. 

2. The General Assembly should be empowered to admit new 
members to the Organization upon recommendation of the Security 
Council. 

3. The General Assembly should, upon recommendation of the 
Security Council, be empowered to suspend from the exercise of any 
rights or privileges of membership any member of the Organization 
against which preventive or enforcement action shall have been 
taken by the Security Council. The exercise of the rights and privi- 
leges thus suspended may be restored by decision of the Security 
Council. The General Assembly should be empowered upon recom- 
mendation of the Security Council to expel from the Organization 
any member of the Organization which persistently violates the 
principles contained in the Charter. 

4. The General Assembly should elect the non-permanent mem- 
bers of the Security Council and the members of the Economic and 
Social Council provided for in Chapter IX. It should be empowered 
to elect upon recommendation of the Security Council, the Secretary- 
General of the Organization. It should perform such functions in 
relation to the election of the Judges of the International Court of 
Justice as may be conferred upon it by the Statute of the Court. 

5. The General Assembly should apportion the expenses among the 
members of the Organization and should be empowered to approve 
the budgets of the Organization. 

6. The General Assembly should initiate studies and make recom- 
mendations for the purpose of promoting international co-operation 
in political, economic and social fields and of adjusting situations 
likely to impair the general welfare. 

7. The General Assembly should make recommendations for the 
co-ordination of the policies of international economic, social and 

95 



DUMBARTON OAKS 

other specialized agencies brought into relation with the Organiza- 
tion in accordance with agreements between such agencies and the 
Organization. 

8. The General Assembly should receive and consider annual and 
special reports from the Security Council and reports from other 
bodies of the Organization. 

(G) Voting 

1 . Each member of the Organization should have one vote in the 
General Assembly. 

2. Important decisions of the General Assembly, including recom- 
mendations with respect to the maintenance of international peace 
and security; the election of members of the Security Council; 
election of members of the Economic and Social Council; admission 
of members, suspension of the exercise of the rights and privileges of 
members, and expulsion of members; and budgetary questions, 
should be made by a two-thirds majority of those present and voting. 
On other questions, including the determination of additional 
categories of questions to be decided by a two-thirds majority, the 
decisions of the General Assembly should be made by a simple 
majority vote. 

(D) Procedure 

1. The General Assembly should meet in regular annual sessions 
and in such special sessions as occasion may require. 

2. The General Assembly should adopt its own rules of procedure 
and elect its president for each session. 

3. The General Assembly should be empowered to set up such 
bodies and agencies as it may deem necessary for the performance of 
its functions. 

CHAPTER VI 

THE SECURITY COUNCIL 

(A) Composition 

The Security Council should consist of one representative of each 
of eleven members of the Organization. Representatives of the 
United States of America, the United Kingdom of Great Britain 
and Northern Ireland, the Union of Soviet Socialist Republics, the 
Republic of China, and in due course France, should have perma- 
nent seats. The General Assembly should elect six States to fill the 
non-permanent seats. These six States should be elected for a term of 
two years, three retiring each year. They should not be immediately 
eligible for re-election. In the first election of the non-permanent 
members three should be chosen by the General Assembly for one- 
year terms and three for two-year terms. 

96 



DUMBARTON OAKS 

(B) Principal functions and powers 

1 . In order to ensure prompt and effective action by the Organiza- 
tion, members of the Organization should by the Charter confer on 
the Security Council primary responsibility for the maintenance of 
international peace and security and should agree that in carrying 
out these duties under this responsibility it should act on their 
behalf. 

2. In discharging these duties the Security Council should act in 
accordance with the purposes and principles of the Organization. 

3. The specific powers conferred on the Security Council in order 
to carry out these duties are laid down in Chapter VIII. 

4. All members of the Organization should obligate themselves to 
accept the decisions of the Security Council and to carry them out in 
accordance with the provisions of the Charter. 

5. In order to promote the establishment and maintenance of 
international peace and security with the least diversion of the 
world's human and economic resources for armaments, the Security 
Council, with the assistance of the Military Staff Committee referred 
to in Chapter VIII, Section (B), paragraph 9, should have the 
responsibility for formulating plans for the establishment of a system 
of regulation of armaments for submission to the members of the 
Organization. 

(C) Voting 

[NOTE. The question of voting procedure in the Security Council 
is still under consideration.] 

(D) Procedure 

1. The Secuiity Council should be so organized as to be able to 
function continuously and each State member of the Security Coun- 
cil should be permanently represented at the headquarters of the 
Organization. It may hold meetings at such other places as in its 
judgement may best facilitate its work. There should be periodic 
meetings at which each State member of the Security Council could, 
if it so desired, be represented by a member of the Government or 
some other special representative. 

2. The Security Council should be empowered to set up such 
bodies or agencies as it may deem necessary for the performance of 
its functions, including regional sub-committees of the Military 
Staff Committee. 

3. The Security Council should adopt its own rules of procedure, 
including the method of selecting its President. 

4. Any member of the Organization should participate in the 
discussion of any question brought before the Security Council 

g 97 



DUMBARTON OAKS 

whenever the Security Council considers that the interests of that 
member of the Organization are specially affected. 

5. Any member of the Organization not having a seat on the 
Security Council and any State not a member of the Organization 
if it is a party to a dispute under consideration by the Security 
Council should be invited to participate in the discussion relating to 
the dispute. 

CHAPTER VII 

AN INTERNATIONAL COURT OF JUSTICE 

1 . There should be an International Court of Justice which should 
constitute the principal judicial organ of the Organization. 

2. The Court should be constituted and should function in accor- 
dance with a Statute which should be annexed to and be a part of 
the Charter of the Organization. 

3. The Statute of the Court of International Justice should be 
either (a) the Statute of the Permanent Court of International 
Justice, continued in force with such modifications as may be de- 
sirable, or (b) a new Statute in the preparation of which the Statute 
of the Permanent Court of International Justice should be used as a 
basis. 

4. All members of the Organization should, ipso facto, be parties to 
the Statute of the International Court of Justice. 

5. Conditions under which States not members of the Organiza- 
tion may become parties to the Statute of the International Court of 
Justice should be determined in each case by the General Assembly 
upon recommendation of the Security Council. 

CHAPTER VIII 

ARRANGEMENTS FOR THE MAINTENANCE OF INTERNATIONAL PEACE AND 
SECURITY, INCLUDING PREVENTION AND SUPPRESSION OF AGGRESSION 

(A) Pacific settlement of disputes 

1. The Security Council should be empowered to investigate any 
dispute, or any situation which may lead to international friction or 
give rise to a dispute, in order to determine whether its continuance 
is likely to endanger the maintenance of international peace and 
security. 

2. Any State, whether member of the Organization or not, may 
bring any such dispute or situation to the attention of the General 
Assembly or of the Security Council. 

3. The parties to any dispute the continuance of which is likely to 
endanger the maintenance of international peace and security 

98 



DUMBARTON OAKS 

should obligate themselves, first of all, to seek a solution by negotia- 
tion, mediation, conciliation, arbitration or judicial settlement, or 
other peaceful means of their own choice. The Security Council 
should call upon the parties to settle their dispute by such means. 

4. If, nevertheless, parties to a dispute of the nature referred to in 
paragraph 3 above fail to settle it by the means indicated in that 
paragraph, they should obligate themselves to refer it to the Security 
Council. The Security Council should in each case decide whether 
or not the continuance of the particular dispute is in fact likely to 
endanger the maintenance of international peace and security and, 
accordingly, whether the Security Council should deal with the 
dispute, and, if so, whether it should take action under paragraph 5. 

5. The Security Council should be empowered at any stage of a 
dispute of the nature referred to in paragraph 3 above to recommend 
appropriate procedures or methods of adjustment. 

6. Justiciable disputes should normally be referred to the Inter- 
national Court of Justice. The Security Council should be empower- 
ed to refer to the Court for advice legal questions connected with 
other disputes. 

7. The provisions of paragraphs 1-6 of Section (A) should not 
apply to situations or disputes arising out of matters which by 
international law are solely within the domestic jurisdiction of the 
State concerned. 

(B) Determination of threats to the peace or acts of aggression, and action 
with respect thereto 

1 . Should the Security Council deem that a failure to settle a dis- 
pute in accordance with the procedures indicated in paragraph 3 of 
Section A, or in accordance with its recommendations made under 
paragraph 5 of Section (A), constitutes a threat to the maintenance 
of international peace and security, it should take any measures 
necessary for the maintenance of international peace and security in 
accordance with the purposes and principles of the Organization. 

2. In general the Security Council should determine the existence 
of any threat to the peace, breach of the peace or act of aggression 
and should make recommendations or decide upon the measures to 
be taken to maintain or restore peace and security. 

3. The Security Council should be empowered to determine what 
diplomatic, economic or other measures not involving the use of 
armed force should be employed to give effect to its decisions, and to 
call upon members of the Organization to apply such measures. 
Such measures may include complete or partial interruption of rail, 
sea, air, postal, telegraphic, radio and other means of communica- 
tion and the severance of diplomatic and economic relations. 

99 



DUMBARTON OAKS 

4. Should the Security Council consider such measures to be in- 
adequate, it should be empowered to take such action by air, naval 
or land forces as may be necessary to maintain or restore internation- 
al peace and security. Such action may include demonstrations, 
blockade and other operations by air, sea or land forces of members 
of the Organization. 

5. In order that all members of the Organization should con- 
tribute to the maintenance of international peace and security, they 
should undertake to make available to the Security Council, on its 
call and in accordance with a special agreement or agreements con- 
cluded among themselves, armed forces, facilities and assistance 
necessary for the purpose of maintaining international peace and 
security. Such agreement or agreements should govern the numbers 
and types of forces and the nature of the facilities and assistance to be 
provided. The special agreement or agreements should be negotiated 
as soon as possible, and should in each case be subject to approval 
by the Security Council arid to ratification by the Signatory States 
in accordance with their constitutional processes. 

6. In order to enable urgent military measures to be taken by the 
Organization, there should be held immediately available by the 
members of the Organization national Air Force contingents for 
combined international enforcement action. The strength and de- 
gree of readiness of these contingents and plans for their combined 
action should be determined by the Security Council, with the assis- 
tance of the Military Staff Committee, within the limits laid down in 
the special agreement or agreements referred to in paragraph 5 above. 

7. The action required to carry out the decisions of the Security 
Council for the maintenance! of international peace and security 
should be taken by all the members of the Organization in co- 
operation or by some of them as the Security Council may determine. 
This undertaking should be carried out by the members of the 
Organization by their own action and through action of the appro- 
priate specialized Organizations and agencies of which they are 
members. 

8. Plans for the application of armed force should be made by the 
Security Council with the assistance of the Military Staff Committee 
referred to in paragraph 9 below. 

9. There should be established a Military Staff Committee, the 
functions of which should be to advise and assist the Security Coun- 
cil on all questions relating to the Security Council's military re- 
quirements for the maintenance of international peace and security, 
to the employment and command of forces placed at its disposal, 
to the regulation of armaments and to possible disarmament. It 
should be responsible under the Security Council for the strategic 

100 



DUMBARTON OAKS 

direction of any armed forces placed at the disposal of the Security 
Council. The Committee should be composed of the Chiefs of Staff 
of the permanent members of the Security Council or their repre- 
sentatives. Any member of the Organization not permanently 
represented on the Committee should be invited by the Committee 
to be associated with it when the efficient discharge of the Commit- 
tee's responsibilities requires that such a State should participate in 
its work. Questions of command of forces should be worked out 
subsequently. 

10. The members of the Organization should join in affording 
mutual assistance in carrying out the measures decided upon by the 
Security Council. 

n. Any State, whether a member of the Organization or not, 
which finds itself confronted with special economic problems arising 
from the carrying out of measures which have been decided upon by 
the Security Council should have the right to consult the Security 
Council in regard to a solution of those problems. 

(C) Regional Arrangements 

1 . Nothing in the Charter should preclude the existence of re- 
gional arrangements or agencies for dealing with such matters re- 
lating to the maintenance of international peace and security as are 
appropriate for regional action, provided such arrangements or 
agencies and their activities are consistent with the purposes and 
principles of the Organization. The Security Council should en- 
courage settlement of local disputes through such regional arrange- 
ments or by such regional agencies either on the initiative of the 
States concerned or by reference from the Security Council. 

2. The Security Council should, where appropriate, utilize such 
arrangements or agencies for enforcement action under its authority 
but no enforcement action should be taken under regional arrange- 
ments or by regional agencies without the authorization of the 
Security Council. 

3. The Security Council should at all times be kept fully informed 
of activities undertaken or in contemplation under regional arrange- 
ments or by regional agencies for the maintenance of international 
peace and security. 

CHAPTER IX 

ARRANGEMENTS FOR INTERNATIONAL ECONOMIC AND SOCIAL 
CO-OPERATION 

(A) Purpose and Relationships 

i . With a view to the creation of conditions of stability and well- 
being which are necessary for peaceful and friendly relations among 

101 



DUMBARTON OAKS 

nations, the Organization should facilitate solutions of international 
economic, social and other humanitarian problems and promote 
respect for human rights and fundamental freedoms. Responsibility 
for the discharge of this function should be vested in the General 
Assembly and under the authority of the General Assembly in an 
Economic and Social Council. 

2. The various specialized economic, social and other organiza- 
tions and agencies would have responsibilities in their respective 
fields as defined in their statutes. Each such organization or agency 
should be brought into relationship with the Organization on terms 
to be determined by agreement between the Economic and Social 
Council and the appropriate authorities of the specialized organiza- 
tion or agency, subject to approval by the General Assembly. 

(B) Composition and Voting 

The Economic and Social Council should consist of representa- 
tives of 1 8 members of the Organization. The States to be represent- 
ed for this purpose should be elected by the General Assembly for 
terms of three years. Each such State should have one representative, 
who should have one vote. Decisions of the Economic and Social 
Council should be taken by simple majority vote of those present 
and voting. 

(C) Functions and powers of the Economic and Social Council 
i. The Economic and Social Council should be empowered: 

(a} To carry out, within the scope of its functions, recommenda- 
tions of the General Assembly; 

(b) To make recommendations on its own initiative with respect 
to international, economic, social and other humanitarian 
matters; 

(c) To receive and consider reports from the economic, social and 
other organizations or agencies brought into relationship with 
the Organization, and to co-ordinate their activities through 
consultations with, and recommendations to, such organiza- 
tions or agencies; 

(d) To examine the administrative budgets of such specialized 
organizations or agencies with a view to making recommenda- 
tions to the organizations or agencies concerned; 

(e) To enable the Secretary-General to provide information to the 
Security Council; 

(f) To assist the Security Council upon its request; and 

(g) To perform such other functions within the general scope of 
its competence as may be assigned to it by the General As- 
sembly. 

I O2 



DUMBARTON OAKS 

(D) Organization and Procedure 

1. The Economic and Social Council should set up an Economic 
Commission, a Social Commission, and such other Commissions as 
may be required. These Commissions should consist of experts. 
There should be a permanent staff which should constitute a part of 
the Secretariat of the Organization. 

2. The Economic and Social Council should make suitable ar- 
rangements for representatives of the specialized organizations or 
agencies to participate without vote in its deliberations and in those 
of the commissions established by it. 

3. The Economic and Social Council should adopts its own rules 
of procedure and the method of selecting its president. 

CHAPTER X 

THE SECRETARIAT 

1. There should be a secretariat comprising a Secretary-General 
and such staff as may be required. The Secretary-General should be 
the chief administrative ofTicer of the Organization. He should be 
elected by the General Assembly on recommendation of the Security 
Council, for such term and under such conditions as arc specified in 
the Charter. 

2. The Secretary-General should act in that capacity in all meet- 
ings of the General Assembly, of the Security Council, and of the 
Economic and Social Council, and should make an annual report to 
the General Assembly on the work of the Organization. 

3. The Secretary-General should have the right to bring to the 
attention of the Security Council any matter which in his opinion 
may threaten international peace and security. 

CHAPTER XI 

AMENDMENTS 

Amendments should come into force for all members of the Or- 
ganization when they have been adopted by a vote of two-thirds of 
the members of the General Assembly and ratified in accordance 
with their respective constitutional processes by the members of the 
Organization having permanent membership on the Security Coun- 
cil and of a majority of the other members of the Organization. 

CHAPTER XII 

TRANSITIONAL ARRANGEMENTS 

i. Pending the coming into force of the special agreement or 
agreements referred to in Chapter VIII, section (B), paragraph 5, 

103 



DUMBARTON OAKS 

and in accordance with the provisions of paragraph 5 of the Four- 
Nation Declaration, signed at Moscow, October 30, 1943, the States 
parties to that declaration should consult with one another and 
as occasion arises with other members of the Organization with a 
view to such joint action on behalf of the Organization as may be 
necessary for the purpose of maintaining international peace and 
security. 

2. No provision of the Charter should preclude action taken or 
authorized in relation to enemy States as a result of the present war 
by the Governments having responsibility for such action. 

NOTE. In addition to the question of voting procedure in the 
Security Council, referred to in Chapter VI, several other ques- 
tions are still under consideration. 



INTERNATIONAL CIVIL AVIATION CONFERENCE 1 

Chicago, December 7, 1944 

The Governments of Afghanistan, Australia, Belgium, Bolivia, 
Brazil, Canada, Chile, China, Colombia, Costa Rica, Cuba, Czecho- 
slovakia, Dominican Republic, Ecuador, Egypt, El Salvador, 
Ethiopia, France, Greece, Guatemala, Haiti, Honduras, Iceland, 
India, Iran, Iraq, Ireland, Lebanon, Liberia, Luxembourg, Mexico, 
Netherlands, New Zealand, Nicaragua, Norway, Panama, Paraguay, 
Peru, Philippine Commonwealth, Poland, Portugal, Spain, Sweden, 
Switzerland, Syria, Turkey, Union of South Africa, United King- 
dom, United States of America, Uruguay, Venezuela, and Yugo- 
slavia were represented. 



CONVENTION ON INTERNATIONAL CIVIL AVIATION 
PREAMBLE 

Whereas the future development of international civil aviation 
can greatly help to create and preserve friendship and understanding 
among the nations and peoples of the world, yet its abuse can be- 
come a threat to the general security, and 

WHEREAS it is desirable to avoid friction and to promote that co- 
operation between nations and peoples upon which the peace of the 
world depends, 

1 Cmd. 6614. 

104 



INTERNATIONAL CIVIL AVIATION CONFERENCE 

THEREFORE, the undersigned governments having agreed on 
certain principles and arrangements in order that international civil 
aviation may be developed in a safe and orderly manner and that 
international air transport services may be established on the basis 
of equality of opportunity and operated soundly and economically. 

Have accordingly concluded this Convention to that end. 



PART I. AIR NAVIGATION 
CHAPTER I 

GENERAL PRINCIPLES AND APPLICATION OF THE CONVENTION 

Article I 
Sovereignty 

The contracting States recognize that every State has complete 
and exclusive sovereignty over the airspace above its territory. 

Article 2 
Territory 

For the purposes of this Convention the territory of a State shall 
be deemed to be the land areas and territorial waters adjacent 
thereto under the sovereignty, suzerainty, protection or mandate of 
such State. 

Article 3 
Civil and State aircraft 

(a) This Convention shall be applicable only to civil aircraft, and 
shall not be applicable to State aircraft. 

(b] Aircraft used in military, customs and police services shall be 
deemed to be State aircraft. 

(c) No State aircraft of a contracting State shall fly over the ter- 
ritory of another State or land thereon without authorization 
by special agreement or otherwise, and in accordance with the 
terms thereof. 

( d] The contracting States undertake, when issuing regulations for 
their State aircraft, that they will have due regard for the 
safety of navigation of civil aircraft. 



Article 4 
Misuse of civil aviation 



Misuse ot civil aviation 

Each contracting State agrees not to use civil aviation for any 
purpose inconsistent with the aims of this Convention. 

105 



INTERNATIONAL CIVIL AVIATION CONFERENCE 

CHAPTER II 

FLIGHT OVER TERRITORY OF CONTRACTING STATES 

Article 5 
Right of non-scheduled flight 

Each contracting State agrees that all aircraft of the other con- 
tracting States, being aircraft not engaged in scheduled international 
air services shall have the right, subject to the observance of the terms 
of this Convention, to make flights into or in transit non-stop across 
its territory and to make stops for non-traffic purposes without the 
necessity of obtaining prior permission, and subject to the right of 
the State flown over to require landing. Each contracting State 
nevertheless reserves the right, for reasons of safety of flight, to re- 
quire aircraft desiring to proceed over regions which are inaccessible 
or without adequate air navigation facilities to follow prescribed 
routes, or to obtain special permission for such flights. 

Such aircraft, if engaged in the carriage of passengers, cargo, or 
mail for remuneration or hire on other than scheduled international 
air services, shall also, subject to the provisions of Article 7, have the 
privilege of taking on or discharging passengers, cargo, or mail, 
subject to the right of any State where such embarkation or dis- 
charge takes place to impose such regulations, conditions or limita- 
tions as it may consider desirable. 

Article 6 
Scheduled air services 

No scheduled international air service may be operated over or 
into the territory of a contracting State, except with the special per- 
mission or other authorization of that State, and in accordance with 
the terms of such permission or authorization. 

Article 7 
Cabotage 

Each contracting State shall have the right to refuse permission to 
the aircraft of other contracting States to take on in its territory 
passengers, mail and cargo carried for remuneration or hire and 
destined for another point within its territory. Each contracting 
State undertakes not to enter into any arrangements which specifi- 
cally grant any such privilege on an exclusive basis to any other State 
or an airline of any other State, and not to obtain any such exclusive 
privilege from any other State. 



1 06 



INTERNATIONAL CIVIL AVIATION CONFERENCE 

Article 8 
Pilotless aircraft 

No aircraft capable of being flown without a pilot shall be flown 
without a pilot over the territory of a contracting State without 
special authorization by that State and in accordance with the terms 
of such authorization. Each contracting State undertakes to insure 
that the flight of such aircraft without a pilot in regions open to civil 
aircraft shall be so controlled as to obviate danger to civil aircraft. 

Article 9 
Prohibited areas 

(a) Each contracting State may, for reasons of military necessity 
or public safety, restrict or prohibit uniformly the aircraft of other 
States from flying over certain areas of its territory, provided that no 
distinction in this respect is made between the aircraft of the State 
whose territory is involved, engaged in international scheduled air- 
line services, and the aircraft of the other contracting States likewise 
engaged. Such prohibited areas shall be of reasonable extent and 
location so as not to interfere unnecessarily with air navigation. 
Descriptions of such prohibited areas in the territory of a contracting 
State, as well as any subsequent alterations therein, shall be com- 
municated as soon as possible to the other contracting States and to 
the International Civil Aviation Organization. 

(b) Each contracting State reserves also the right, in exceptional 
circumstances or during a period of emergency, or in the interest of 
public safety, and with immediate effect, temporarily to restrict or 
prohibit flying over the whole or any part of its territory, on con- 
dition that such restriction or prohibition shall be applicable without 
distinction of nationality to aircraft of all other States. 

(c) Each contracting State, under such regulations as it may 
prescribe, may require any aircraft entering the areas contemplated 
in sub-paragraphs (a) or (b) above to effect a landing as soon as 
practicable thereafter at some designated airport within its territory. 

Article 10 
Landing at customs airport 

Except in a case where, under the terms of this Convention or a 
special authorization, aircraft are permitted to cross the territory of 
a contracting State without landing, every aircraft which enters the 
territory of a contracting State shall, if the regulations of that State 
so require, land at an airport designated by that State for the pur- 
pose of customs and other examination. On departure from the ter- 
ritory of a contracting State, such aircraft shall depart from a similar- 
ly designated customs airport. Particulars of all designated customs 

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airports shall be published by the State and transmitted to the 
International Civil Aviation Organization established under Part II 
of this Convention for communication to all other contracting States. 

Article n 
Applicability of air regulations 

Subject to the provisions of this Convention, the laws and regula- 
tions of a contracting State relating to the admission to or departure 
from its territory of aircraft engaged in international air navigation, 
or to the operation and navigation of such aircraft while within its 
territory, shall be applied to the aircraft of all contracting States 
without distinction as to nationality, and shall be complied with by 
such aircraft upon entering or departing from or while within the 
territory of that State. 

Article 12 
Rules of the air 

Each contracting State undertakes to adopt measures to insure 
that every aircraft flying over or manoeuvring within its territory 
and that every aircraft carrying its nationality mark, wherever such 
aircraft may be, shall comply with the rules and regulations relating 
to the flight and manoeuvre of aircraft there in force. Each con- 
tracting State undertakes to keep its own regulations in these re- 
spects uniform, to the greatest possible extent, with those established 
from time to time under this Convention. Over the high seas, the 
rules in force shall be those established under this Convention. Each 
contracting State undertakes to insure the prosecution of all persons 
violating the regulations applicable. 

Article 13 
Entry and clearance regulations 

The laws and regulations of a contracting State as to the admission 
to or departure from its territory of passengers, crew, or cargo of air- 
craft, such as regulations relating to entry, clearance, immigration, 
passports, customs, and quarantine shall be complied with by or on 
behalf of such passengers, crew or cargo upon entrance into or de- 
parture from, or while within the territory of that State. 

Article 14 
Prevention of spread of disease 

Each contracting State agrees to take effective measures to pre- 
vent the spread by means of air navigation of cholera, typhus (epi- 
demic), smallpox, yellow fever, plague, and such other communi- 
cable diseases as the contracting States shall from time to time decide 

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to designate, and to that end contracting States will keep in close 
consultation with the agencies concerned with international regula- 
tions relating to sanitary measures applicable to aircraft. Such 
consultation shall be without prejudice to the application of any 
existing international convention on this subject to which the con- 
tracting States may be parties. 

Article 75 
Airport and similar charges 

Every airport in a contracting State which is open to public use 
by its national aircraft shall likewise, subject to the provisions of 
Article 68, be open under uniform conditions to the aircraft of all the 
other contracting States. The like uniform conditions shall apply to 
the use, by aircraft of every contracting State, of all air navigation 
facilities, including radio and meteorological services, which may be 
provided for public use for the safety and expedition of air naviga- 
tion. 

Any charges that may be imposed or permitted to be imposed by 
a contracting State for the use of such airports and air navigation 
facilities by the aircraft of any other contracting State shall not be 
higher, 

(a) as to aircraft not engaged in scheduled international air ser- 
vices, than those that would be paid by its national aircraft of 
the same class engaged in similar operations, and 

(b) as to aircraft engaged in scheduled international air services, 
than those that would be paid by its national aircraft engaged 
in similar international air services. 

All such charges shall be published and communicated to the Inter- 
national Civil Aviation Organization: provided that, upon repre- 
sentation by an interested contracting State, the charges imposed 
for the use of airports and other facilities shall be subject to review 
by the Council, which shall report and make recommendations 
thereon for the consideration of the State or States concerned. No 
fees, dues or other charges shall be imposed to any contracting State 
in respect solely of the right of transit over or entry into or exit from 
its territory of any aircraft of a contracting State or persons or pro- 
perty thereon. 

Article 16 
Search of aircraft 

The appropriate authorities of each of the contracting States shall 
have the right, without unreasonable delay, to search aircraft of the 
other contracting States on landing or departure, and to inspect the 
certificates and other documents prescribed by this Convention. 

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CHAPTER III 

NATIONALITY OF AIRCRAFT 

Article ij 
Nationality of aircraft 

Aircraft have the nationality of the State in which they are regis- 
tered. 

Article 18 
Dual registration 

An aircraft cannot be validly registered in more than one State, 
but its registration may be changed from one State to another. 

Article 79 
National laws governing registration 

The registration or transfer of registration of aircraft in any con- 
tracting State shall be made in accordance with its laws and 
regulations. 

Article 20 
Display of marks 

Every aircraft engaged in international air navigation shall bear 
its appropriate nationality and registration marks. 

Article 21 
Report of registrations 

Each contracting State undertakes to supply to any other con- 
tracting State or to the International Civil Aviation Organization, 
on demand, information concerning the registration and ownership 
of any particular aircraft registered in that State. In addition, each 
contracting State shall furnish reports to the International Civil 
Aviation Organization, under such regulations as the latter may 
prescribe, giving such pertinent data as can be made available con- 
cerning the ownership and control of aircraft registered in that State 
and habitually engaged in international air navigation. The data 
thus obtained by the International Civil Aviation Organization shall 
be made available by it on request to the other contracting States. 

CHAPTER IV 

MEASURES TO FACILITATE AIR NAVIGATION 

Article 22 
Facilitation of formalities 

Each contracting State agrees to adopt all practicable measures, 
through the issuance of special regulations or otherwise, to facilitate 
and expedite navigation by aircraft between the territories of con- 
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trading States, and to prevent unnecessary delays to aircraft, crews, 
passengers and cargo, especially in the administration of the laws 
relating to immigration, quarantine, customs and clearance. 

Article 23 
Customs and immigration procedures 

Each contracting State undertakes, so far as it may find prac- 
ticable, to establish customs and immigration procedures affecting 
international air navigation in accordance with the practices which 
may be established or recommended from time to time, pursuant to 
this Convention. Nothing in this Convention shall be construed as 
preventing the establishment of customs-free airports. 

Article 24 
Customs duty 

(a) Aircraft on a flight to, from, or across the territory of another 
contracting State shall be admitted temporarily free of duty, subject 
to the customs regulations of the State. Fuel, lubricating oils, spare 
parts, regular equipment and aircraft stores on board an aircraft of a 
contracting State, on arrival in the territory of another contracting 
State and retained 011 board on leaving the territory of that State 
shall be exempt from customs duty, inspection fees or similar national 
or local duties and charges. This exemption shall not apply to any 
quantities or articles unloaded except in accordance with the 
customs regulations of the State, which may require that they shall 
be kept under customs supervision. 

(b) Spare parts and equipment imported into the territory of a 
contracting State for incorporation in or use on an aircraft of another 
contracting State engaged in international air navigation shall be 
admitted free of customs duty, subject to compliance with the regula- 
tions of the State concerned, which may provide that the articles 
shall be kept under customs supervision and control. 

Article 25 
Aircraft in distress 

Each contracting State undertakes to provide such measures of 
assistance to aircraft in distress in its territory as it may find prac- 
ticable, and to permit, subject to control by its own authorities, the 
owners of the aircraft or authorities of the State in which the aircraft 
is registered to provide such measures of assistance as may be neces- 
sitated by the circumstances. Each contracting State, when under- 
taking search for missing aircraft, will collaborate in co-ordinated 
measures which may be recommended from time to time pursuant 
to this Convention. 

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Article 26 
Investigation of Accidents 

In the event of an accident to an aircraft of a contracting State 
occurring in the territory of another contracting State, and involving 
death or serious injury, or indicating serious technical defect in the 
aircraft or air navigation facilities, the State in which the accident 
occurs will institute an inquiry into the circumstances of the accident, 
in accordance, so far as its laws permit, with the procedure which 
may be recommended by the International Civil Aviation Organiza- 
tion. The State in which the aircraft is registered shall be given the 
opportunity to appoint observers to be present at the inquiry and 
the State holding the inquiry shall communicate the report and 
findings in the matter to that State. 

Article 27 
Exemption from seizure on patent claims 

(a) While engaged in international air navigation, any authorized 
entry of aircraft of a contracting State into the territory of another 
contracting State or authorized transit across the territory of such 
State with or without landings shall not entail any seizure or deten- 
tion of the aircraft or any claim against the owner or operator thereof 
or any other interference therewith by or on behalf of such State or 
any person therein, on the ground that the construction, mechanism, 
parts, accessories or operation of the aircraft is an infringement of 
any patent, design, or model duly granted or registered in the State 
whose territory is entered by the aircraft, it being agreed that no 
deposit of security in connection with the foregoing exemption from 
seizure or detention of the aircraft shall in any case be required in the 
State entered by such aircraft. 

(b) The provisions of paragraph (a) of this Article shall also be 
applicable to the storage of spare parts and spare equipment for the 
aircraft and the right to use and install the same in the repair of an 
aircraft of a contracting State in the territory of any other contracting 
State, provided that any patented part or equipment so stored shall 
not be sold or distributed internally in or exported commercially 
from the contracting State entered by the aircraft. 

(c) The benefits of this Article shall apply only to such States, 
parties to this Convention, as either (i) are parties to the Inter- 
national Convention for the Protection of Industrial Property 1 and 
to any amendments thereof; or (2) have enacted patent laws which 
recognize and give adequate protection to inventions made by the 
nationals of the other States parties to this Convention. 

1 Treaty Series No. 55 (1938), Cmd. 5833. 

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Article 28 
Air navigation facilities and standard systems 

Each contracting State undertakes, so far as it may find prac- 
ticable to: 

(a) Provide, in its territory, airports, radio services, meteorological 
services and other air navigation facilities to facilitate inter- 
national air navigation, in accordance with the standards and 
practices recommended or established from time to time, 
pursuant to this Convention; 

(b) Adopt and put into operation the appropriate standard 
systems of communications procedure, codes, markings, sig- 
nals, lighting and other operational practices and rules which 
may be recommended or established from time to time, pur- 
suant to this Convention; 

(c) Collaborate in international measures to secure the publication 
of aeronautical maps and charts in accordance with standards 
which may be recommended or established from time to time, 
pursuant to this Convention. 

CHAPTER V 

CONDITIONS TO BE FULFILLED WITH RESPECT TO AIRCRAFT 

Article 29 
Documents carried in aircraft 

Every aircraft of a contracting State, engaged in international 
navigation, shall carry the following documents in conformity with 
the conditions prescribed in this Convention: 

(a) Its certificate of registration; 

(b) Its certificate of airworthiness; 

(c) The appropriate licences for each member of the crew; 

(d) Its journey log book; 

(e) If it is equipped with radio apparatus, the aircraft radio 
station licence; 

(f) If it carries passengers, a list of their names and places of em- 
barkation and destination; 

(g) If it carries cargo, a manifest and detailed declarations of the 
cargo. 

Article 30 
Aircraft radio equipment 

(a) Aircraft of each contracting State may, in or over the territory 
of other contracting States, carry radio transmitting apparatus only 
if a licence to install and operate such apparatus has been issued by 
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the appropriate authorities of the State in which the aircraft is 
registered. The use of radio transmitting apparatus in the territory of 
the contracting State whose territory is flown over shall be in accor- 
dance with the regulations prescribed by that State. 

(b) Radio transmitting apparatus may be used only by members of 
the flight crew who are provided with a special licence for the pur- 
pose, issued by the appropriate authorities of the State in which the 
aircraft is registered. 

Article 31 
Certificates of airworthiness 

Every aircraft engaged in international navigation shall be pro- 
vided with a certificate of airworthiness issued or rendered valid by 
the State in which it is registered. 

Article 32 
Licences of personnel 

(a) The pilot of every aircraft and the other members of the 
operating crew of every aircraft engaged in international navigation 
shall be provided with certificates of competency and licences issued 
or rendered valid by the State in which the aircraft is registered. 

(b) Each contracting State reserves the right to refuse to recognize, 
for the purpose of flight above its own territory, certificates of com- 
petency and licences granted to any of its nationals by another con- 
tracting State. 

Article 33 
Recognition of certificates and licences 

Certificates of airworthiness and certificates of competency and 
licences issued or rendered valid by the contracting State in which 
the aircraft is registered, shall be recognized as valid by the other 
contracting States, provided that the requirements under which such 
certificates or licences were issued or rendered valid are equal to or 
above the minimum standards which may be established from time 
to time pursuant to this Convention. 

Article 34 
Journey log books 

There shall be maintained in respect of every aircraft engaged in 
international navigation a journey log book in which shall be en- 
tered particulars of the aircraft, its crew and of each journey, in such 
form as may be prescribed from time to time pursuant to this Con- 
vention. 



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Article 35 
Cargo restrictions 

(a) No munitions of war or implements of war may be carried in 
or above the territory of a State in aircraft engaged in international 
navigation, except by permission of such State. Each State shall 
determine by regulations what constitutes munitions of war or im- 
plements of war for the purposes of this Article, giving due con- 
sideration, for the purposes of uniformity, to such recommendations 
as the International Civil Aviation Organization may from time to 
time make. 

(b) Each contracting State reserves the right, for reasons of public 
order and safety, to regulate or prohibit the carriage in or above its 
territory of articles other than those enumerated in paragraph (a): 
provided that no distinction is made in this respect between its 
national aircraft engaged in international navigation and the air- 
craft of the other States so engaged; and provided further that no 
restriction shall be imposed which may interfere with the carriage 
and use on aircraft of apparatus necessary for the operation or navi- 
gation of the aircraft or the safety of the personnel or passengers. 

Article 36 
Photographic apparatus 

Each contracting State may prohibit or regulate the use of photo- 
graphic apparatus in aircraft over its territory. 

CHAPTER VI 

INTERNATIONAL STANDARDS AND RECOMMENDED PRACTICES 

Article 37 
Adoption of international standards and procedures 

Each contracting State undertakes to collaborate in securing the 
highest practicable degree of uniformity in regulations, standards, 
procedures, and organization in relation to aircraft, personnel, air- 
ways and auxiliary services in all matters in which such uniformity 
will facilitate and improve air navigation. 

To this end the International Civil Aviation Organization shall 
adopt and amend from time to time, as may be necessary, inter- 
national standards and recommended practices and procedures 
dealing with: 

(a) Communications systems and air navigation aids, including 
ground marking; 

(b) Characteristics of airports and landing areas; 

(c) Rules of the air and air traffic control practices; 

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INTERNATIONAL CIVIL AVIATION CONFERENCE 

(d) Licensing of operating and mechanical personnel; 

(e) Airworthiness of aircraft; 

(f) Registration and identification of aircraft; 

(g) Collection and exchange of meteorological information; 
(h) Log Books; 

(i) Aeronautical maps and charts; 

(j) Customs and immigration procedures; 

(k) Aircraft in distress and investigation of accidents; 
and such other matters concerned with the safety, regularity, and 
efficiency of air navigation as may from time to time appear 
appropriate. 

Article 38 
Departures from international standards and procedures 

Any State which finds it impracticable to comply in all respects 
with any such international standard or procedure, or to bring its 
own regulations or practices into full accord with any international 
standard or procedure after amendment of the latter, or which 
deems it necessary to adopt regulations or practices differing in any 
particular respect from those established by an international stan- 
dard, shall give immediate notification to the International Civil 
Aviation Organization of the differences between its own practice 
and that established by the international standard. In the case of 
amendments to international standards, any State which does not 
make the appropriate amendments to its own regulations or prac- 
tices shall give notice to the Council within 60 days of the adoption 
of the amendment to the international standard, or indicate the 
action which it proposes to take. In any such case, the Council shall 
make immediate notification to all other States of the difference 
which exists between one or more features of an international stan- 
dard and the corresponding national practice of that State. 

Article 39 
Endorsement of certificates of licences 

(a) Any aircraft or part thereof with respect to which there exists 
an international standard of airworthiness or performance, arid which 
failed in any respect to satisfy that standard at the time of its certifica- 
tion, shall have endorsed on or attached to its airworthiness certificate 
a complete enumeration of the details in respect of which it so failed. 

(b) Any person holding a licence who docs not satisfy in full the 
conditions laid down in the international standard relating to the 
class of licence or certificate which he holds shall have endorsed on 
or attached to his licence a complete enumeration of the particulars 
in which he does not satisfy such conditions. 

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Article 40 
Validity of endorsed certificates and licences 

No aircraft or personnel having certificates or licences so endorsed 
shall participate in international navigation, except with the per- 
mission of the State or States whose territory is entered. The registra- 
tion or use of any such aircraft, or of any certificated aircraft part, in 
any State other than that in which it was originally certificated shall 
be at the discretion of the State into which the aircraft or part is 
imported. 

Article 41 
Recognition of existing standards of airworthiness 

The provisions of this Chapter shall not apply to aircraft and air- 
craft equipment of types of which the prototype is submitted to the 
appropriate national authorities for certification prior to a date 
three years after the date of adoption of an international standard 
of airworthiness for such equipment. 

Article 42 
Recognition of existing standards of competency of personnel 

The provisions of this Chapter shall not apply to personnel whose 
licences are originally issued prior to a date one year after initial 
adoption of an international standard of qualification for such per- 
sonnel; but they shall in any case apply to all personnel whose licences 
remain valid five years after the date of adoption of such standard. 



PART II. THE INTERNATIONAL CIVIL AVIATION 
ORGANIZATION 

CHAPTER VII 

THE ORGANIZATION 

Article 43 
Name and composition 

An organization to be named the International Civil Aviation 
Organization is formed by the Convention. It is made up of an 
Assembly, a Council, and such other bodies as may be necessary. 

Article 44 
Objectives 

The aims and objectives of the Organization are to develop the 
principles and techniques of international air navigation and to 



INTERNATIONAL CIVIL AVIATION CONFERENCE 

foster the planning and development of international air transport 
so as to: 

(0) Ensure the safe and orderly growth of international civil 
aviation throughout the world; 

(b) Encourage the arts of aircraft design and operation for peace- 
ful purposes; 

(c) Encourage the development of airways, airports, and air 
navigation facilities for international civil aviation; 

(d) Meet the needs of the peoples of the world for safe, regular, 
efficient and economical air transport; 

(e) Prevent economic waste caused by unreasonable competition; 

(f) Ensure that the rights of contracting States are fully respected 
and that every contracting State has a fair opportunity to 
operate international airlines; 

(g) Avoid discrimination between contracting States; 

(h) Promote safety of flight in international air navigation; 
(t) Promote generally the development of all aspects of inter- 
national civil aeronautics. 

Article 45 

The permanent seat of the Organization shall be at such place as 
shall be determined at the final meeting of the Interim Assembly of 
the Provisional International Civil Aviation Organization set up by 
the Interim Agreement on International Civil Aviation signed at 
Chicago on December 7, 1944. The seat may be temporarily trans- 
ferred elsewhere by decision of the Council. 

Article 46 
First Meeting of Assembly 

The first meeting of the Assembly shall be summoned by the 
Interim Council of the above-mentioned Provisional Organization 
as soon as the Convention has come into force, to meet at a time and 
place to be decided by the Interim Council. 

Article 47 
Legal capacity 

The Organization shall enjoy in the territory of each contracting 
State such legal capacity as may be necessary for the performance of 
its functions. Full juridical personality shall be granted wherever 
compatible with the constitution and laws of the State concerned. 



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CHAPTER VIII 

THE ASSEMBLY 

Article 48 
Meetings of Assembly and voting 

(a) The Assembly shall meet annually and shall be convened by 
the Council at a suitable time and place. Extraordinary meetings for 
the Assembly may be held at any time upon the call of the Council 
or at the request of any ten contracting States addressed to the 
Secretary General. 

(b) All contracting States shall have an equal right to be represent- 
ed at the meetings of the Assembly and each contracting State shall 
be entitled to one vote. Delegates representing contracting States 
may be assisted by technical advisers who may participate in the 
meetings but shall have no vote. 

(c) A majority of the contracting States is required to constitute 
a quorum for the meetings of the Assembly. Unless otherwise 
provided in this Convention, decisions of the Assembly shall be 
taken by a majority of the votes cast. 

Article 49 
Powers and duties of Assembly 

The powers and duties of the Assembly shall be to: 

(a) Elect at each meeting its President and other officers; 

(b) Elect the contracting States to be represented on the Council, 
in accordance with the provisions of Chapter IX; 

(c) Examine and take appropriate action on the reports of the 
Council and decide on any matter referred to it by the Council; 

(d) Determine its own rules of procedure and establish such sub- 
sidiary commissions as it may consider to be necessary or 
desirable; 

(e) Vote an annual budget and determine the financial arrange- 
ments of the Organization, in accordance with the provisions 
of Chapter XII; 

(f) Review expenditures and approve the accounts of the Or- 
ganization; 

(g) Refer, at its discretion, to the Council, to subsidiary commis- 
sions, or to any other body any matter within its sphere of 
action; 

(K) Delegate to the Council the powers and authority necessary or 
desirable for the discharge of the duties of the Organization 
and revoke or modify the delegations of authority at any time; 

(i) Carry out the appropriate provisions of Chapter XIII; 

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(j) Consider proposals for the modification or amendment of the 
provisions of this Convention and, if it approves of the pro- 
posals, recommend them to the contracting States in accor- 
dance with the provisions of Chapter XXI 

(k) Deal with any matter within the sphere of action of the Or- 
ganization not specifically assigned to the Council. 

CHAPTER IX 

THE COUNCIL 

Article 50 
Composition and election of Council 

(a) The Council shall be a permanent body responsible to the 
Assembly. It shall be composed of 2 1 contracting States elected by 
the Assembly. An election shall be held at the first meeting of the 
Assembly and thereafter every three years, and the members of the 
Council so elected shall hold office until the next following election. 

(b) In electing the members of the Council, the Assembly shall 
give adequate representation to (i) the States of chief importance in 
air transport; (2) the States not otherwise included which make the 
largest contribution to the provision of facilities for international 
civil air navigation; and (3) the States not otherwise included whose 
designation will ensure that all the major geographic areas of the 
world are represented on the Council. Any vacancy on the Council 
shall be filled by the Assembly as soon as possible; any contracting 
State so elected to the Council shall hold office for the unexpired 
portion of its predecessor's term of office. 

(c) No representative of a contracting State on the Council shall 
be actively associated with the operation of an international air 
service or financially interested in such a service. 

Article 51 
President of Council 

The Council shall elect its President for a term of three years. He 
may be re-elected. He shall have no vote. The Council shall elect 
from among its members one or more Vice-Presidents who shall 
retain their right to vote when serving as acting President. The Presi- 
dent need not be selected from among the representatives of the 
members of the Council but, if a representative is elected, his seat 
shall be deemed vacant and it shall be filled by the State which he 
represented. The duties of the President shall be to: 

(a) Convene meetings of the Council, the Air Transport Com- 
mittee, and the Air Navigation Commission; 
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(b) Serve as representative of the Council; and 

(c) Carry out on behalf of Council the functions which the Coun- 
cil assigns to him. 

Article 52 
Voting in Council 

Decisions by the Council shall require approval by a majority of 
its members. The Council may delegate authority with respect 
to any particular matter to a committee of its members. Decisions of 
any committee of the Council may be appealed to the Council 
by any interested contracting State. 

Article 53 
Participation without a vote 

Any contracting State may participate, without a vote, in the con- 
sideration by the Council and by its committees and commissions of 
any question which especially affects its interests. No member of the 
Council shall vote in the consideration by the Council of a dispute to 
which it is a party. 

Article 54 

Mandatory functions of Council 
The Council shall: 

(a) Submit annual reports to the Assembly; 

(b) Carry out the directions of the Assembly and discharge the 
duties and obligations which are laid on it by this Convention; 

(c) Determine its organization and rules of procedure; 

(d) Appoint and define the duties of an Air Transport Committee, 
which shall be chosen from among the representatives of the 
members of the Council, and which shall be responsible to it; 

(e) Establish an Air Navigation Commission, in accordance with 
the provisions of Chapter X; 

(f) Administer the finances of the Organization in accordance 
with the provisions of Chapters XII and XV; 

(g) Determine the emoluments of the President of the Council; 
(h) Appoint a chief executive officer who shall be called the 

Secretary General, and make provision for the appointment of 
such other personnel as may be necessary, in accordance with 
the provisions of Chapter XI; 

({) Request, collect, examine and publish information relating to 
the advancement of air navigation and the operation of inter- 
national air services, including information about the costs of 
operation and particulars of subsidies paid to airlines from 
public funds; 

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(j ) Report to contracting States any infraction of this Convention, 
as well as any failure to carry out recommendations or deter- 
minations of the Council; 

(k) Report to the Assembly any infraction of this Convention 
where a contracting State has failed to take appropriate action 
within a reasonable time after notice of the infraction; 

(/) Adopt, in accordance with the provisions of Chapter VI of this 
Convention, international standards and recommended prac- 
tices; for convenience designate them as Annexes to this 
Convention; and notify all contracting States of the action 
taken; 

(m) Consider recommendations of the Air Navigation Commission 
for amendment of the Annexes and take action in accordance 
with the provisions of Chapter XX; 

(n) Consider any matter relating to the Convention which any 
contracting State refers to it. 

Article 55 

Permissive functions of Council 
The Council may: 

(a) Where appropriate and as experience may show to be desir- 
able, create subordinate air transport commissions on a re- 
gional or other basis and define groups of States or airlines 
with or through which it may deal to facilitate the carrying 
out of the aims of this Convention; 

(b) Delegate to the Air Navigation Commission duties additional 
to those set forth in the Convention and revoke or modify 
such delegations of authority at any time; 

(c) Conduct research into all aspects of air transport and air 
navigation which are of international importance, communi- 
cate the results of its research to the contracting States, and 
facilitate the exchange of information between contracting 
States on air transport and air navigation matters; 

(d) Study any matters affecting the organization and operation 
of international air transport, including the international 
ownership and operation of international air services on 
trunk routes, and submit to the Assembly plans in relation 
thereto; 

(e) Investigate, at the request of any contracting State, any 
situation which may appear to present avoidable obstacles to 
the development of international air navigation; and, after 
such investigation, issue such reports as may appear to it 
desirable. 

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CHAPTER X 

THE AIR NAVIGATION COMMISSION 

Article 56 
Nomination and appointment of Commission 

The Air Navigation Commission shall be composed of twelve 
members appointed by the Council from among persons nominated 
by contracting States. These persons shall have suitable qualifica- 
tions and experience in the science and practice of aeronautics. 
The Council shall request all contracting States to submit nomina- 
tions. The President of the Air Navigation Commission shall be 
appointed by the Council. 

Article 57 
Duties of Commission 

The Air Navigation Commission shall: 

(a) Consider, and recommend to the Council for adoption, modi- 
fications of the Annexes to this Convention; 

(b) Establish technical sub-commissions on which any contracting 
State may be represented, if it so desires; 

(c) Advise the Council concerning the collection and communica- 
tion to the contracting States of all information which it 
considers necessary and useful for the advancement of air 
navigation. 

CHAPTER XI 

PERSONNEL 

Article 5$ 
Appointment of personnel 

Subject to any rules laid down by the Assembly and to the pro- 
visions of this Convention, the Council shall determine the method of 
appointment and of termination of appointment, the training, and 
the salaries, allowances and conditions of service of the Secretary 
General and other personnel of the Organization, and may employ 
or make use of the services of nationals of any contracting State. 

Article 59 
International character of personnel 

The President of the Council, the Secretary General, and other 
personnel shall not seek or receive instructions in regard to the dis- 
charge of their responsibilities from any authority external to the 
Organization. Each contracting State undertakes fully to respect 
the international character of the responsibilities of the personnel 

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and not to seek to influence any of its nationals in the discharge < 
their responsibilities. 

Article 60 
Immunities and privileges of personnel 

Each contracting State undertakes, so far as possible under i 
constitutional procedure, to accord to the President of the Counci 
the Secretary General, and the other personnel of the Organizatioi 
the immunities and privileges which arc accorded to correspondin 
personnel of other public international organizations. If a gcner; 
international agreement on the immunities and privileges of intc 
national civil servants is arrived at, the immunities and privileg< 
accorded to the President, the Secretary General, and the othe 
personnel of the Organization shall be the immunities and privileg< 
accorded under that general international agreement. 

CHAPTER XII 

FINANCE 

Article 61 
Budget and apportionment of expenses 

The Council shall submit to the Assembly an annual budge 
annual statements of accounts and estimates of all receipts and e? 
penditures. The Assembly shall vote the budget with whatevc 
modification it sees fit to prescribe, and, with the exception of asses; 
ments under Chapter XV to States consenting thereto, shall appoi 
tion the expenses of the Organization among the contracting Stat< 
on the basis which it shall from time to time determine. 

Article 62 
Suspension of voting power 

The Assembly may suspend the voting power in the Assembly an 
in the Council of any contracting State that fails to discharge withi 
a reasonable period its financial obligations to the Organization. 

Article 63 
Expenses of delegations and other representatives 

Each contracting State shall bear the expenses of its own delegc 
tion to the Assembly and the remuneration, travel, and othc 
expenses of any person whom it appoints to serve on the Council, an 
of its nominees or representatives on any subsidiary committees c 
commissions of the Organization. 

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CHAPTER XIII 

OTHER INTERNATIONAL ARRANGEMENTS 

Article 64 
Security arrangements 

The Organization may, with respect to air matters within its 
competence directly affecting world security, by vote of the As- 
sembly enter into appropriate arrangements with any general 
organization set up by the nations of the world to preserve peace. 

Article 65 
Arrangements with other international bodies 

The Council, on behalf of the Organization, may enter into agree- 
ments with other international bodies for the maintenance of com- 
mon services and for common arrangements concerning personnel 
and, with the approval of the Assembly, may enter into such other 
arrangements as may facilitate the work of the Organization. 

Article 66 
Functions relating to other agreements 

(a) The Organization shall also carry out the functions placed 
upon it by the International Air Services Transit Agreement and by 
the International Air Transport Agreement drawn up at Chicago 
on December 7, 1944, in accordance with the terms and conditions 
therein set forth. 

(b) Members of the Assembly and the Council who have not ac- 
cepted the International Air Services Transit Agreement or the 
International Air Transport Agreement drawn up at Chicago on 
December 7, 1944, shall not have the right to vote on any questions 
referred to the Assembly or Council under the provisions of the 
relevant Agreement. 

PART III. INTERNATIONAL AIR TRANSPORT 
CHAPTER XIV 

INFORMATION AND REPORTS 

Article 67 
File reports with Council 

Each contracting State undertakes that its international airlines 
shall, in accordance with requirements laid down by the Council, file 
with the Council traffic reports, cost statistics and financial statements 
showing among other things all receipts and the sources thereof. 

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INTERNATIONAL CIVIL AVIATION CONFERENCE 

CHAPTER XV 

AIRPORTS AND OTHER AIR NAVIGATION FACILITIES 

Article 68 
Designation of routes and airports 

Each contracting State may, subject to the provisions of this Con- 
vention, designate the route to be followed within its territory by any 
international air service and the airports which any such service 
may use. 

Article 6g 

Improvement of air navigation facilities 

If the Council is of the opinion that the airports or other air 
navigation facilities, including radio and meteorological services, of 
a contracting State are not reasonably adequate for the safe, regular, 
efficient, and economical operation of international air services, 
present or contemplated, the Council shall consult with the State 
directly concerned, and other States affected, with a view to finding 
means by which the situation may be remedied, and may make 
recommendations for that purpose. No contracting State shall be 
guilty of an infraction of this Convention if it fails to carry out these 
recommendations. 

Article jo 
Financing of air navigation facilities 

A contracting State, in the circumstances arising under the pro- 
visions of Article 69, may conclude an arrangement with the Council 
for giving effect to such recommendations. The State may elect to 
bear all of the costs involved in any such arrangement. If the State 
does not so elect, the Council may agree, at the request of the State, 
to provide for all or a portion of the costs. 

Article ji 
Provision and maintenance of facilities by Council 

If a contracting State so requests, the Council may agree to provide, 
man, maintain, and administer any or all of the airports and other air 
navigation facilities, including radio and meteorological services, re- 
quired in its territory for the safe, regular, efficient and economical 
operation of the international air services of the other contracting 
States, and may specify just and reasonable charges for the use of the 
facilities provided. 

Article 72 
Acquisition or use of land 

Where land is needed for facilities financed in whole or in part by 

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the Council at the request of a contracting State, that State shall 
either provide the land itself, retaining title if it wishes, or facilitate 
the use of the land by the Council on just and reasonable terms and in 
accordance with the laws of the State concerned. 

Article 73 
Expenditure and assessment of funds 

Within the limit of the funds which may be made available to it by 
the Assembly under Chapter XII, the Council may make current 
expenditures for the purposes of this Chapter from the general funds 
of the Organization. The Council shall assess the capital funds re- 
quired for the purposes of this Chapter in previously agreed propor- 
tions over a reasonable period of time to the contracting States con- 
senting thereto whose airlines use the facilities. The Council may also 
assess to States that consent any working funds that are required. 

Article 74 
Technical assistance and utilization of revenues 

When the Council, at the request of a contracting State, advances 
funds or provides airports or other facilities in whole or in part, the 
arrangement may provide, with the consent of that State, for tech- 
nical assistance in the supervision and operation of the airports and 
other facilities, and for the payment, from the revenues derived from 
the operation of the airports and other facilities, of the operating 
expenses of the airports and the other facilities, and of interest and 
amortization charges. 

Article 75 
Taking over of facilities from Council 

A contracting State may at any time discharge any obligation into 
which it has entered under Article 70, and take over airports and 
other facilities which the Council has provided in its territory pur- 
suant to the provisions of Articles 71 and 72, by paying to the Coun- 
cil an amount which in the opinion of the Council is reasonable in 
the circumstances. If the State considers that the amount fixed by 
the Council is unreasonable it may appeal to the Assembly against 
the decision of the Council and the Assembly may confirm or amend 
the decision of the Council. 

Article 76 
Return of funds 

Funds obtained by the Council through reimbursement under 
Article 75 and from receipts of interest and amortization payments 
under Article 74 shall, in the case of advances originally financed by 

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States under Article 73, be returned to the States which were ori- 
ginally assessed in the proportion of their assessments, as determined 
by the Council. 

CHAPTER XVI 

JOINT OPERATING ORGANIZATIONS AND POOLED SERVICES 

Article 77 
Joint operating organizations permitted 

Nothing in this Convention shall prevent two or more contracting 
States from constituting joint air transport operating organizations 
or international operating agencies and from pooling their air 
services on any routes or in any regions, but such organizations or 
agencies and such pooled services shall be subject to all the provisions 
of this Convention, including those relating to the registration of 
agreements with the Council. The Council shall determine in what 
manner the provisions of this Convention relating to nationality of 
aircraft shall apply to aircraft operated by international operating 
agencies. 

Article j8 
Function of Council 

The Council may suggest to contracting States concerned that 
they form joint organizations to operate air services on any routes or 
in any regions. 

Article 79 
Participation in operating organizations 

A State may participate in joint operating organizations or in 
pooling arrangements, either through its government or through an 
airline company or companies designated by its government. The 
companies may, at the sole discretion of the State concerned, be 
state-owned or partly state-owned or privately-owned. 



PART IV. FINAL PROVISIONS 
CHAPTER XVII 

OTHER AERONAUTICAL AGREEMENTS AND ARRANGEMENTS 

Article 80 
Paris and Habana Conventions 

Each contracting State undertakes, immediately upon the coming 
into force of this Convention, to give notice of denunciation of the 
Convention relating to the Regulation of Aerial Navigation signed 

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INTERNATIONAL CIVIL AVIAION CONFERENCE 

at Paris on October 13, igig, 1 or the Convention on Commercial 
Aviation signed at Habana on February 20, 1928,2 if it is a party to 
either. As between contracting States, this Convention supersedes 
the Conventions of Paris and Habana previously referred to. 

Article 81 
Registration of existing agreements 

All aeronautical agreements which are in existence on the coming 
into force of this Convention, and which are between a contracting 
State and any other State or between an airline of a contracting 
State and any other State or the airline of any other State, shall be 
forthwith registered with the Council. 

Article 82 
Abrogation of inconsistent arrangements 

The contracting States accept this Convention as abrogating all 
obligations and understandings between them which are inconsistent 
with its terms, and undertake not to enter into any such obligations 
and understandings. A contracting State which, before becoming a 
member of the Organization has undertaken any obligations toward 
a non-contracting State or a national of a contracting State or of a 
non-contracting State inconsistent with the terms of this Conven- 
tion, shall take immediate steps to procure its release from the 
obligations. If an airline of any contracting State has entered into 
any such inconsistent obligations, the State of which it is a national 
shall use its best efforts to secure their termination forthwith and 
shall in any event cause them to be terminated as soon as such action 
can lawfully be taken after the coming into force of this Convention. 

Article 83 
Registration of new arrangements 

Subject to the provisions of the preceding Article, any contracting 
State may make arrangements not inconsistent with the provisions 
of this Convention. Any such arrangement shall be forthwith 
registered with the Council, which shall make it public as soon as 
possible. 



1 Treaty Series No. 2 (1922), Cmd. 1609. 
* League of Nations Treaty Series No. 2963. 

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CHAPTER XVIII 

DISPUTES AND DEFAULT 

Article 84 
Settlement of disputes 

If any disagreement between two or more contracting States re- 
lating to the interpretation or application of this Convention and its 
annexes cannot be settled by negotiation, it shall, on the application 
of any State concerned in the disagreement, be decided by the 
Council. No member of the Council shall vote in the consideration 
by the Council of any dispute to which it is a party. Any contracting 
State may, subject to Article 85, appeal from the decision of the 
Council to an ad hoc arbitral tribunal agreed upon with the other 
parties to the dispute or to the Permanent Court of International 
Justice. Any such appeal shall be notified to the Council within 
sixty days of receipt of notification of the decision of the Council. 

Article 85 
Arbitration procedure 

If any contracting State party to a dispute in which the decision of 
the Council is under appeal has not accepted the Statute of the Per- 
manent Court of International Justice and the contracting States 
parties to the dispute cannot agree on the choice of the arbitral 
tribunal, each of the contracting States parties to the dispute shall 
name a single arbitrator who shall name an umpire. If either con- 
tracting State party to the dispute fails to name an arbitrator within 
a period of three months from the date of the appeal, an arbitrator 
shall be named on behalf of that State by the President of the Coun- 
cil from a list of qualified and available persons maintained by the 
Council. If, within 30 days, the arbitrators cannot agree on an um- 
pire, the President of the Council shall designate an umpire from the 
list previously referred to. The arbitrators and the umpire shall then 
jointly constitute an arbitral tribunal. Any arbitral tribunal estab- 
lished under this or the preceding Article shall settle its own pro- 
cedure and give its decisions by majority vote, provided that the 
Council may determine procedural questions in the event of any 
delay which in the opinion of the Council is excessive. 

Article 86 
Appeals 

Unless the Council decides otherwise, any decision by the Council 
on whether an international airline is operating in conformity with 
the provisions of this Convention shall remain in effect unless re- 
versed on appeal. On any other matter, decisions of the Council 

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shall, if appealed from, be suspended until the appeal is decided. 
The decisions of the Permanent Court of International Justice and 
of an arbitral tribunal shall be final and binding. 

Article 87 
Penalty for non-conformity by airline 

Each contracting State undertakes not to allow the operation of 
an airline of a contracting State through the air space above its 
territory if the Council has decided that the airline concerned is not 
conforming to a final decision rendered in accordance with the pre- 
vious Article. 

Article 88 
Penalty for non-conformity by State 

The Assembly shall suspend the voting power in the Assembly arid 
in the Council of any contracting State that is found in default under 
the provisions of this Chapter. 

CHAPTER XIX 

WAR 

Article 89 
War and emergency conditions 

In case of war, the provisions of this Convention shall not affect 
the freedom of action of any of the contracting States affected, 
whether as belligerents or as neutrals. The same principle shall 
apply in the case of any contracting State which declares a state of 
national emergency and notifies the fact to the Council. 

CHAPTER XX 

ANNEXES 

Article go 
Adoption and Amendment of Annexes 

(a) The adoption by the Council of the Annexes described in 
Article 54, subparagraph ( i ) , shall require the vote of two-thirds of 
the Council at a meeting called for that purpose and shall then be 
submitted by the Council to each contracting State. Any such 
Annex or any amendment of an Annex shall become effective within 
three months after its submission to the contracting States or at the 
end of such longer period of time as the Council may prescribe, un- 
less in the meantime a majority of the contracting States register 
their disapproval with the Council. 

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INTERNATIONAL CIVIL AVIATION CONFERENCE 

(b) The Council shall immediately notify all contracting States of 
the coming into force of any Annex or amendment thereto. 

CHAPTER XXI 

RATIFICATIONS, ADHERENCES, AMENDMENTS, AND DENUNCIATIONS 

Article 91 
Ratification of Convention 

(a) This Convention shall be subject to ratification by the signa- 
tory States. The instruments of ratification shall be deposited in the 
archives of the Government of the United States of America, which 
shall give notice of the date of the deposit to each of the signatory 
and adhering States. 

(b) As soon as this Convention has been ratified or adhered to by 
twenty-six States it shall come into force between them on the 
thirtieth day after deposit of the twenty-sixth instrument. It shall 
come into force for each State ratifying thereafter on the thirtieth 
day after the deposit of its instrument of ratification. 

(c) It shall be the duty of the Government of the United States of 
America to notify the government of each of the signatory and 
adhering States of the date on which this Convention comes into 
force. 

Article 92 
Adherence to Convention 

(a) This Convention shall be open for adherence by members of 
the United Nations and States associated with them, and States 
which remained neutral during the present world conflict. 

(b) Adherence shall be effected by a notification addressed to the 
Government of the United States of America and shall take effect 
as from the thirtieth day from the receipt of the notification by 
the Government of the United States of America, which shall 
notify all the contracting States. 

Article 93 
Admission of other States 

States other than those provided for in Articles 91 and 92 (a) may, 
subject to approval by any general international organization set up 
by the nations of the world to preserve peace, be admitted to par- 
ticipation in this Convention by means of a four-fifths vote of the 
Assembly and on such conditions as the Assembly may prescribe: 
provided that in each case the assent of any State invaded or at- 
tacked during the present war by the State seeking admission shall 
be necessary. 

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Article 94 
Amendment of Convention 

(a) Any proposed amendment to this Convention must be ap- 
proved by a two-thirds vote of the Assembly and shall then come into 
force in respect of States which have ratified such amendment when 
ratified by the number of contracting States specified by the As- 
sembly. The number so specified shall not be less than two-thirds of 
the total number of contracting States. 

(b) If in its opinion the amendment is of such a nature as to justify 
this course, the Assembly in its resolution recommending adoption 
may provide that any State which has not ratified within a specified 
period after the amendment has come into force shall thereupon 
cease to be a member of the Organization and a party to the Con- 
vention. 

Article $5 
Denunciation of Convention 

(a) Any contracting State may give notice of denunciation of this 
Convention three years after its coming into effect by notification 
addressed to the Government of the United States of America, which 
shall at once inform each of the contracting States. 

(b) Denunciation shall take effect one year from the date of the 
receipt of the notification and shall operate only as regards the State 
effecting the denunciation. 

CHAPTER XXII 

DEFINITIONS 

Article 96 
For the purpose of this Convention the expression: 

(a) "Air Service" means any scheduled air service performed by 
aircraft for the public transport of passengers, mail or cargo. 

(b) "International air service" means an air service which passes 
through the air space over the territory of more than one 
State. 

(c) "Airline" means any air transport enterprise offering or oper- 
ating an international air service. 

(d) "Stop for non-traffic purposes" means a landing for any pur- 
pose other than taking on or discharging passengers, cargo 
or mail. 

SIGNATURE OF CONVENTION 

In witness whereof, the undersigned Plenipotentiaries, having been 
duly authorized, sign this Convention on behalf of their respective 
governments on the dates appearing opposite their signatures. 

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INTERNATIONAL CIVIL AVIATION CONFERENCE 

DONE at Chicago the 7th day of December, 1944, in the English 
language. A text drawn up in the English, French, and Spanish 
languages, each of which shall be of equal authenticity, shall be 
opened for signature at Washington, D.G. Both texts shall be de- 
posited in the archives of the Government of the United States of 
America, and certified copies shall be transmitted by that Govern- 
ment to the governments of all the States which may sign or adhere 
to this Convention. 

For the Government of 



APPENDIX III 

INTERNATIONAL AIR SERVICES TRANSIT AGREEMENT 

The States which sign and accept this International Air Services 
Transit Agreement, being members of the International Civil Avia- 
tion Organization, declare as follows: 

Article i 
Section i 

Each contracting State grants to the other contracting States the 
following freedoms of the air in respect of scheduled international 
air services: 

1. The privilege to fly across its territory without landing; 

2. The privilege to land for non-traffic purposes. 

The privileges of this section shall not be applicable with respect 
to airports utilized for military purposes to the exclusion of any 
scheduled international air services. In areas of active hostilities or of 
military occupation, and in time of war along the supply routes 
leading to such areas, the exercise of such privileges shall be subject 
to the approval of the competent military authorities. 

Section 2 

The exercise of the foregoing privileges shall be in accordance 
with the provisions of the Interim Agreement on International Civil 
Aviation and, when it comes into force, with the provisions of the 
Convention on International Civil Aviation, both drawn up at 
Chicago on December 7, 1944. 

Section 3 

A contracting State granting to the airlines of another contracting 
State the privilege to stop for non-traffic purposes may require such 
airlines to offer reasonable commercial service at the points at which 
such stops are made. 

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Such requirement shall not involve any discrimination between 
airlines operating on the same route, shall take into account the capa- 
city of the aircraft, and shall be exercised in such a manner as not to 
prejudice the normal operations of the international air services con- 
cerned or the rights and obligations of a contracting State. 

Section 4 

Each contracting State may, subject to the provisions of this 
Agreement, 

1 . Designate the route to be followed within its territory by any 
international air service and the airports which any such ser- 
vice may use; 

2. Impose or permit to be imposed on any such service just and 
reasonable charges for the use of such airports and other 
facilities; these charges shall not be higher than would be paid 
for the use of such airports and facilities by its national aircraft 
engaged in similar international services: provided that, upon 
representation by an interested contracting State, the charges 
imposed for the use of airports and other facilities shall be 
subject to review by the Council of the International Civil 
Aviation Organization established under the above-mentioned 
Convention, which shall report and make recommendations 
thereon for the consideration of the State or States concerned. 

Section 5 

Each contracting State reserves the right to withhold or revoke a 
certificate or permit to an air transport enterprise of another State 
in any case where it is not satisfied that substantial ownership and 
effective control are vested in nationals of a contracting State, or 
in case of failure of such air transport enterprise to comply with 
the laws of the State over which it operates, or to perform its 
obligations under this Agreement. 

Article II 
Section i 

A contracting State which deems that action by another contract- 
ing State under this Agreement is causing injustice or hardship to it, 
may request the Council to examine the situation. The Council shall 
thereupon inquire into the matter, and shall call the States concern- 
ed into consultation. Should such consultation fail to resolve the 
difficulty, the Council may make appropriate findings and recom- 
mendations to the contracting States concerned. If thereafter a 
contracting State concerned shall in the opinion of the Council un- 
reasonably fail to take suitable corrective action, the Council may 

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INTERNATIONAL CIVIL AVIATION CONFERENCE 

recommend to the Assembly of the above-mentioned Organization 
that such contracting State be suspended from its rights and privi- 
leges under this Agreement until such action has been taken. The 
Assembly by a two-thirds vote may so suspend such contracting 
State for such period of time as it may deem proper or until the 
Council shall find that corrective action has been taken by such 
State. 

Section 2 

If any disagreement between two or more contracting States re- 
lating to the interpretation or application of this Agreement cannot 
be settled by negotiation, the provisions of Chapter XVIII of the 
above-mentioned Convention shall be applicable in the same manner 
as provided therein with reference to any disagreement relating to 
the interpretation or application of the above-mentioned Conven- 
tion. 

Article III 

This Agreement shall remain in force as long as the above- 
mentioned Convention; provided, however, that any contracting 
State, a party to the present Agreement, may denounce it on one 
year's notice given by it to the Government of the United States of 
America, which shall at once inform all other contracting States of 
such notice and withdrawal. 

Article IV 

Pending the coming into force of the above-mentioned Conven- 
tion, all references to it herein, other than those contained in Article 
II, Section 2, and Article V, shall be deemed to be references to the 
Interim Agreement on International Civil Aviation drawn up at 
Chicago on December 7, 1944; and references to the International 
Civil Aviation Organization, the Assembly, and the Council shall be 
deemed to be references to the Provisional International Civil 
Aviation Organization, the Interim Assembly, and Interim Coun- 
cil, respectively. 

Article V 

For the purposes of this Agreement, "territory" shall be defined 
as in Article 2 of the above-mentioned Convention. 

Article VI 

SIGNATURES AND ACCEPTANCES OF AGREEMENT 

The undersigned delegates to the International Civil Aviation 
Conference, convened in Chicago on November i, 1944, have 
affixed their signatures to this Agreement with the understanding 

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INTERNATIONAL CIVIL AVIATION CONFERENCE 

that the Government of the United States of America shall be in- 
formed at the earliest possible date by each of the governments on 
whose behalf the Agreement has been signed whether signature on 
its behalf shall constitute an acceptance of the Agreement by that 
government and an obligation binding upon it. 

Any State a member of the International Civil Aviation Organiza- 
tion may accept the present Agreement as an obligation binding 
upon it by notification of its acceptance to the Government of the 
United States, and such acceptance shall become effective upon the 
date of the receipt of such notification by that Government. 

This Agreement shall come into force as between contracting 
States upon its acceptance by each of them. Thereafter it shall be- 
come binding as to each other State indicating its acceptance to the 
Government of the United States on the date of the receipt of the 
acceptance by that Government. The Government of the United 
States shall inform all signatory and accepting States of the date of 
all acceptances of the Agreement, and of the date on which it comes 
into force for each accepting State. 

IN WITNESS WHEREOF, the undersigned, having been duly author- 
ized, sign this Agreement on behalf of their respective governments 
on the dates appearing opposite their respective signatures. 

DONE at Chicago the seventh day of December, 1944, in the 
English language. A text drawn up in the English, French, and 
Spanish languages, each of which shall be of equal authenticity, 
shall be opened for signature at Washington, D.C. Both texts shall 
be deposited in the archives of the Government of the United States 
of America, and certified copies shall be transmitted by that 
Government to the governments of all the States which may sign or 
accept this Agreement. 

APPENDIX IV 

INTERNATIONAL AIR TRANSPORT AGREEMENT 

The States which sign and accept this International Air Transport 
Agreement being members of the International Civil Aviation 
Organization declare as follows: 

Article I 
Section i 

Each contracting State grants to the other contracting States the 
following freedoms of the air in respect of scheduled international 
air services: 

1. The privilege to fly across its territory without landing; 

2. The privilege to land for non-traflic purposes; 

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INTERNATIONAL CIVIL AVIATION CONFERENCE 

3. The privilege to put down passengers, mail and cargo taken 
on in the territory of the State whose nationality the aircraft 
possesses; 

4. The privilege to take on passengers, mail and cargo destined 
for the territory of the State whose nationality the aircraft 
possesses; 

5. The privilege to take on passengers, mail and cargo destined 
for the territory of any other contracting State and the privilege 
to put down passengers, mail and cargo coming from any such 
territory. 

With respect to the privileges specified under paragraphs 3, 4 and 5 
of this Section, the undertaking of each contracting State relates 
only to through services on a route constituting a reasonably direct 
line out from and back to the homeland of the State whose nationality 
the aircraft possesses. 

The privileges of this section shall not be applicable with respect 
to airports utilized for military purposes to the exclusion of any 
scheduled international air services. In areas of active hostilities or of 
military occupation, and in time of war along the supply routes 
leading to such areas, the exercise of such privileges shall be subject 
to the approval of the competent military authorities. 

Section 2 

The exercise of the foregoing privileges shall be in accordance 
with the provisions of the Interim Agreement on International Civil 
Aviation and, when it comes into force, with the provisions of the 
Convention on International Civil Aviation, both drawn up at 
Chicago on December 7, 1944. 

Section 3 

A contracting State granting to the airlines of another contracting 
State the privilege to stop for non-traffic purposes may require such 
airlines to offer reasonable commercial service at the points at which 
such stops are made. 

Such requirement shall not involve any discrimination between 
airlines operating on the same route, shall take into account the 
capacity of the aircraft, and shall be exercised in such a manner as 
not to prejudice the normal operations of the international air ser- 
vices concerned or the rights and obligations of any contracting 
State. 

Section 4 

Each contracting State shall have the right to refuse permission to 
the aircraft of other contracting States to take on in its territory pas- 

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INTERNATIONAL CIVIL AVIATION CONFERENCE 

sengers, mail and cargo carried for remuneration or hire and destined 
for another point within its territory. Each contracting State under- 
takes not to enter into any arrangements which specifically grant 
any such privilege on an exclusive basis to any other State or an 
airline of any other State, and not to obtain any such exclusive 
privilege from any other State. 

Section 5 

Each contracting State may, subject to the provisions of this 
Agreement, 

1. Designate the route to be followed within its territory by any 
international air service and the airports which any such ser- 
vice may use; 

2. Impose or permit to be imposed on any such service just and 
reasonable charges for the use of such airports and other 
facilities; these charges shall not be higher than would be 
paid for the use of such airports and facilities by its national 
aircraft engaged in similar international services: provided 
that, upon representation by an interested contracting State, 
the charges imposed for the use of airports and other facilities 
shall be subject to review by the Council of the International 
Civil Aviation Organization established under the above- 
mentioned Convention, which shall report and make recom- 
mendations thereon for the consideration of the State or States 
concerned. 

Section 6 

Each contracting State reserves the right to withhold or revoke a 
certificate or permit to an air transport enterprise of another State 
in any case where it is not satisfied that substantial ownership and 
effective control are vested in nationals of a contracting State, or 
in case of failure of such air transport enterprise to comply with 
the laws of the State over which it operates, or to perform its 
obligations under this Agreement. 

Article II 
Section i 

The contracting States accept this Agreement as abrogating all 
obligations and understandings between them which are inconsistent 
with its terms, and undertake not to enter into any such obligations 
and understandings. A contracting State which has undertaken any 
other obligations inconsistent with this Agreement shall take im- 
mediate steps to procure its release from the obligations. If an airline 
of any contracting State has entered into any such inconsistent 

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INTERNATIONAL CIVIL AVIATION CONFERENCE 

obligations, the State of which it is a national shall use its best 
efforts to secure their termination forthwith and shall in any event 
cause them to be terminated as soon as such action can lawfully be 
taken after the coming into force of this Agreement. 

Section 2 

Subject to the provisions of the preceding Section, any contracting 
State may make arrangements concerning international air services 
not inconsistent with this Agreement. Any such arrangement shall 
be forthwith registered with the Council; which shall make it public 
as soon as possible. 

Article III 

Each contracting State undertakes that in the establishment and 
operation of through services due consideration shall be given to the 
interests of the other contracting States so as not to interfere unduly 
with their regional services or to hamper the development of their 
through services. 

Article IV 
Section i 

Any contracting State may by reservation attached to this Agree- 
ment at the time of signature or acceptance elect not to grant and 
receive the rights and obligations of Article I, Section i, paragraph 
5, and may at any time after acceptance, on six months' notice given 
by it to the Council, withdraw itself from such rights and obligations. 
Such contracting State may on six months' notice to the Council 
assume or resume, as the case may be, such rights and obligations. 
No contracting State shall be obliged to grant any right under the 
said paragraph to any contracting State not bound thereby. 

Section 2 

A contracting State which deems that action by another contract- 
ing State under this Agreement is causing injustice or harship to it, 
may request the Council to examine the situation. The Council shall 
thereupon inquire into the matter, and shall call the States concerned 
into consultation. Should such consultation fail to resolve the diffi- 
culty, the Council may make appropriate findings and recommenda- 
tions to the contracting States concerned. If thereafter a contracting 
State concerned shall in the opinion of the Council unreasonably fail 
to take suitable corrective action, the Council may recommend to 
the Assembly of the above-mentioned Organization that such con- 
tracting State be suspended from its rights and privileges under this 
Agreement until such action has been taken. The Assembly by a 
two-thirds vote may so suspend such contracting State for such period 

140 



INTERNATIONAL CIVIL AVIATION CONFERENCE 

of time as it may deem proper or until the Council shall find that 
corrective action has been taken by such State. 

Section 3 

If any disagreement between two or more contracting States re- 
lating to the interpretation or application of this Agreement cannot 
be settled by negotiation, the provisions of Chapter XVIII of the 
above-mentioned Convention shall be applicable in the same manner 
as provided therein with reference to any disagreement relating to 
the interpretation or application of the above-mentioned Conven- 
tion. 

Article V 

This Agreement shall remain in force as long as the above-men- 
tioned Convention; provided, however, that any contracting State, 
a party to the present Agreement, may denounce it on one year's 
notice given by it to the Government of the United States of America, 
which shall at once inform all other contracting States of such notice 
and withdrawal. 

Article VI 

Pending the coming into force of the above-mentioned Conven- 
tion, all references to it herein other than those contained in Article 
IV, Section 3, and Article VII shall be deemed to be references to 
the Interim Agreement on International Civil Aviation drawn up at 
Chicago on December 7, 1944; and references to the International 
Civil Aviation Organization, the Assembly, and the Council shall be 
deemed to be references to the Provisional International Civil 
Aviation Organization, the Interim Assembly, and the Interim 
Council, respectively. 

Article VII 

For the purposes of this Agreement, "territory" shall be defined 
as in Article 2 of the above-mentioned Convention. 

Article VIII 

SIGNATURES AND ACCEPTANCES OF AGREEMENT 

The undersigned delegates to the International Civil Aviation 
Conference, convened in Chicago on November i , 1 944, have affixed 
their signatures to this Agreement with the understanding that the 
Government of the United States of America shall be informed at 
the earliest possible date by each of the governments on whose be- 
half the Agreement has been signed whether signature on its behalf 
shall constitute an acceptance of the Agreement by that govern- 
ment and an obligation binding upon it. 

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INTERNATIONAL CIVIL AVIATION CONFERENCE 

Any State a member of the International Civil Aviation Organiza- 
tion may accept the present Agreement as an obligation binding 
upon it by notification of its acceptance to the Government of the 
United States, and such acceptance shall become effective upon the 
date of the receipt of such notification by that Government. 

This Agreement shall corne into force as between contracting 
States upon its acceptance by each of them. Thereafter it shall be- 
come binding as to each other State indicating its acceptance to the 
Government of the United States on the date of the receipt of the 
acceptance by that Government. The Government of the United 
States shall inform all signatory and accepting States of the date of 
all accceptances of the Agreement, and of the date on which it comes 
into force for each accepting State. 

IN WITNESS WHEREOF, the undersigned, having been duly author- 
ized, sign this Agreement on behalf of their respective governments 
on the date appearing opposite their respective signatures. 

DONE at Chicago the seventh day of December, 1 944, in the Eng- 
lish language. A text drawn up in the English, French, and Spanish 
languages, each of which shall be of equal authenticity, shall be 
opened for signature at Washington, D.C. Both texts shall be de- 
posited in the archives of the Government of the United States of 
America, and certified copies shall be transmitted by that Govern- 
ment to the governments of all the States which may sign or accept 
this Agreement. 



REPORT OF THE CRIMEA CONFERENCE 1 

February 1 1 , 1 945 

The following statement is made by the Prime Minister of Great 
Britain, the President of the United States of America, and the 
Chairman of the Council of People's Commissars of the Union of 
Soviet Socialist Republics, on the results of the Crimea Conference. 

I. THE DEFEAT OF GERMANY 

We have considered and determined the military plans of the 
three Allied Powers for the final defeat of the common enemy. The 
military staffs of the three allied nations have met in daily meetings 
throughout the Conference. These meetings have been most satis- 
factory from every point of view and have resulted in closer co- 
ordination of the military effort of the three Allies than ever before. 

1 Cmd. 6598. 

142 



CRIMEA CONFERENCE 

The fullest information has been interchanged. The timing, scope 
and co-ordination of new and even more powerful blows to be 
launched by our armies and air forces into the heart of Germany 
from the East, West, North and South have been fully agreed and 
planned in detail. 

Our combined military plans will be made known only as we 
execute them, but we believe that the very close working partner- 
ship among the three staffs attained at this Conference will result in 
shortening the war. Meetings of the three staffs will be continued in 
the future whenever the need arises. 

Nazi Germany is doomed. The German people will only make 
the cost of their defeat heavier to themselves by attempting to con- 
tinue a hopeless resistance. 

II. THE OCCUPATION AND CONTROL OF GERMANY 
We have agreed on common policies and plans for enforcing the 
unconditional surrender terms which we shall impose together on 
Nazi Germany after German armed resistance has been finally 
crushed. These terms will not be made known until the final defeat 
of Germany has been accomplished. Under the agreed plan, the 
forces of the Three Powers will each occupy a separate zone of 
Germany. Co-ordinated administration and control has been pro- 
vided for under the plan through a central Control Commission 
consisting of the Supreme Commanders of the Three Powers with 
headquarters in Berlin. It has been agreed that France should be 
invited by the Three Powers, if she should so desire, to take over a 
zone of occupation, and to participate as a fourth member of the 
Control Commission. The limits of the French zone will be agreed by 
the four Governments concerned through their representatives on 
the European Advisory Commission. 

It is our inflexible purpose to destroy German militarism and 
Nazism and to ensure that Germany will nevei again be able to dis- 
turb the peace of the world. We arc determine i to disarm and dis- 
band all German armed forces; break up for a 11 time the German 
General Staff that has repeatedly contrived the resurgence of Ger- 
man militarism; remove or destroy all German military equipment; 
eliminate or control all German industry that could be used for 
military production; bring all war criminals to ju stand swift punish- 
ment and exact reparation in kind for the desti action wrought by 
the Germans; wipe out the Nazi party, Nazi laws, organizations and 
institutions, remove all Nazi and militarist influences from public 
office and from the cultural and economic life of the German people; 
and take in harmony such other measures in Germany as may be 
necessary to the future peace and safety of the world. It is not our 



CRIMEA CONFERENCE 

purpose to destroy the people of Germany, but only when Nazism 
and militarism have been extirpated, will there be hope for a decent 
life for Germans, and a place for them in the comity of nations. 

III. REPARATION BY GERMANY 

We have considered the question of the damage caused by Ger- 
many to the Allied Nations in this war arid recognized it as just that 
Germany be obliged to make compensation for this damage in kind 
to the greatest extent possible. A Commission for the Compensation of 
Damage will be established. The Commission will be instructed to 
consider the question of the extent and methods for compensating 
damage caused by Germany to the Allied countries. The Com- 
mission will work in Moscow. 

IV. UNITED NATIONS CONFERENCE 

We are resolved upon the earliest possible establishment with our 
Allies of a general international organization to maintain peace and 
security. We believe that this is essential, both to prevent aggression 
and to remove the political, economic and social causes of war 
through the close and continuing collaboration of all peace-loving 
peoples. 

The foundations were laid at Dumbarton Oaks. On the important 
question of voting procedure, however, agreement was not there 
reached. The present conference has been able to resolve this diffi- 
culty. 

We have agreed that a Conference of United Nations should be 
called to meet at San Francisco in the United States on April 25, 
1945, to prepare the charter of such an organization, along the lines 
proposed in the informal conversations at Dumbarton Oaks. 

The Government of China and the Provisional Government of 
France will be immediately consulted and invited to sponsor in- 
vitations to the Conference jointly with the Governments of the 
United States, Great Britain and the Union of Soviet Socialist 
Republics. As soon as the consultation with China and France 
has been completed, the text of the proposals on voting proced- 
ure will be made public. 

V. DECLARATION ON LIBERATED EUROPE 

We have drawn up and subscribed to a declaration on liberated 
Europe. This declaration provides for concerting the policies of 
the Three Powers and for joint action by them in meeting the 
political and economic problems of liberated Europe in accord- 
ance with democratic principles. The text of the Declaration is as 
follows: 

144 



CRIMEA CONFERENCE 

The Premier of the Union of Soviet Socialist Republics, the Prime 
Minister of the United Kingdom, and the President of the United 
States of America have consulted with each other in the common 
interests of the peoples of their countries and those of liberated 
Europe. They jointly declare their mutual agreement to concert 
during the temporary period of instability in liberated Europe the 
policies of their three Governments in assisting the peoples liberated 
from the domination of Nazi Germany and the peoples of the former 
Axis satellite States of Europe to solve by democratic means their 
pressing political and economic problems. 

The establishment of order in Europe and the rebuilding of 
national economic life must be achieved by processes which will 
enable the liberated peoples to destroy the last vestiges of Nazism 
and Fascism, and to create democratic institutions of their own 
choice. This is a principle of the Atlantic Charter the right of all 
peoples to choose the form of government under which they will 
live the restoration of sovereign rights and self-government to 
those peoples who have been forcible deprived of them by the 
aggressor nations. 

To foster the conditions in which the liberated peoples may exer- 
cise those rights, the three Governments will jointly assist the people 
in any European liberated State or former Axis satellite State in 
Europe where in their judgment conditions require: (a) to establish 
conditions of internal peace; (b) to carry out emergency measures 
for the relief of distressed peoples; (c) to form interim governmental 
authorities broadly representative of all democratic elements in the 
population and pledged to the earliest possible establishment 
through free elections of Governments responsive to the will of the 
people; and (d) to facilitate where necessary the holding of such 
elections. 

The three Governments will consult the other United Nations and 
provisional authorities or other Governments in Europe when mat- 
ters of direct interest to them are under consideration. 

When, in the opinion of the three Governments, conditions in 
any European liberated State or any former Axis satellite State in 
Europe make such action necessary, they will immediately consult 
together on the measures necessary to discharge the joint respon- 
sibilities set forth in this declaration. 

By this declaration we reaffirm our faith in the principles of the 
Atlantic Charter, our pledge in the declaration by the United 
Nations, and our determination to build in co-operation with other 
peace-loving nations a world order under law, dedicated to peace, 
security, freedom and the general well-being of all mankind. 

In issuing this declaration, the Three Powers express the hope that 

k 145 



CRIMEA CONFERENCE 

the Provisional Government of the French Republic may be as- 
sociated with them in the procedure suggested. 

VI. POLAND 

We came to the Crimea Conference resolved to settle our dif- 
ferences about Poland. We discussed fully all aspects of the question. 
We reaffirm our common desire to see established a strong, free, 
independent and democratic Poland. As a result of our discussions 
we have agreed on the conditions in which a new Polish Provisional 
Government of National Unity may be formed in such a manner as 
to command recognition by the three major Powers. 

The agreement reached is as follows: 

A new situation has been created in Poland as a result of her 
complete liberation by the Red Army. This calls for the establish- 
ment of a Polish Provisional Government which can be more broadly 
based than was possible before the recent liberation of western 
Poland. The Provisional Government which is now functioning in 
Poland should therefore be rcoiganized on a broader democratic 
basis with the inclusion of democratic leaders from Poland itself and 
from Poles abroad. This new Government should then be called the 
Polish Provisional Government of National Unity. 

M. Molotov, Mr Harriman and Sir A. Clark Kerr are authorized 
as a Commission to consult in the first instance in Moscow with 
members of the present Provisional Government arid with other 
Polish democratic leaders from within Poland and from abroad, 
with a view to the reorganization of the present Government along 
the above lines. This Polish Provisional Government of National 
Unity shall be pledged to the holding of free and unfettered elec- 
tions as soon as possible on the basis of universal suffrage and secret 
ballot. In these elections all democratic and anti-Nazi parties shall 
have the right to take part and to put forward candidates. 

When a Polish Provisional Government of National Unity has 
been properly formed in conformity with the above, the Govern- 
ment of the Union of Soviet Socialist Republics, which now main- 
tains diplomatic relations with the present Provisional Government 
of Poland, and the Government of the United Kingdom and the 
Government of the United States will establish diplomatic relations 
with the new Polish Government of National Unity, and will ex- 
change Ambassadors by whose reports the respective Governments 
will be kept informed about the situation in Poland. 

The three Heads of Government consider that the eastern frontier 
of Poland should follow the Curzon line with digressions from it in 
some regions of five to eight kilometres in favour of Poland. They 

146 



CRIMEA CONFERENCE 

recognize that Poland must receive substantial accessions of ter- 
ritory in the North and West. They feel that the opinion of the new 
Polish Provisional Government of National Unity should be sought 
in due course on the extent of these accessions and that the final 
delimitation of the western frontier of Poland should thereafter 
await the Peace Conference. 

VII. YUGOSLAVIA 

We have agreed to recommend to Marshal Tito and Dr Subasic 
that the Agreement between them should be put into effect im- 
mediately, and that a new Government should be formed on the 
basis of that Agreement. 

We also recommend that as soon as the new Government has been 
formed it should declare that 

(i) The Anti-Fascist Assembly of National Liberation (Avnoj) 
should be extended to include members of the last Yugoslav 
Parliament (Skupshtina) who have riot compromised them- 
selves by collaboration with the enemy, thus forming a body 
to be known as a temporary Parliament; and 
(ii) Legislative acts passed by the Assembly of National Libera- 
tion will be subject to subsequent ratification by a Con- 
stituent Assembly. 

There was also a general review of other Balkan questions. 

VIII. MEETINGS OF FOREIGN SECRETARIES 

Throughout the Conference, besides the daily meetings of the 
Heads of Governments and the Foreign Secretaries, separate 
meetings of the three Foreign Secretaries, and their advisers, have 
also been held daily. 

These meetings have proved of the utmost value and the Con- 
ference agreed that permanent machinery should be set up for 
regular consultation between the three Foreign Secretaries. They 
will, therefore, meet as often as may be necessary, probably about 
every three or four months. These meetings will be held in rotation 
in the three Capitals, the first meeting being held in London, after 
the United Nations Conference on World Organization. 

IX. UNITY FOR PEACE AS FOR WAR 

Our meeting here in the Crimea has reaffirmed our common 
determination to maintain and strengthen in the peace to come that 
unity of purpose and of action which has made victory possible and 
certain for the United Nations in this war. We believe that this is a 
sacred obligation which our Governments owe to our peoples and to 
all the peoples of the world. 

H7 



CRIMEA CONFERENCE 

Only with continuing and growing co-operation and under- 
standing among our three countries, and among all the peace- 
loving nations, can the highest aspiration of humanity be realized 
a secure and lasting peace which will, in the words of the Atlantic 
Charter "Afford assurance that all the men in all the lands may live 
out their lives in freedom from fear and want." 

Victory in this war and establishment of the proposed internation- 
al organization will provide the greatest opportunity in all history to 
create in the years to come the essential conditions of such a peace. 

(Signed) WINSTON S. CHURCHILL 

FRANKLIN D. ROOSEVELT 
J. V. STALIN 



UNITED NATIONS CONFERENCE 1 

Documents adopted at San Francisco, June 26, 1945 

CHARTER OF THE UNITED NATIONS 2 

We, the peoples of the United Nations, determined to save suc- 
ceeding generations from the scourge of war, which twice in our life- 
time has brought untold sorrow to mankind, and 

to reaffirm faith in fundamental human rights, in the dignity and 
worth of the human person, in the equal rights of men and women 
and of nations large and small, and 

to establish conditions under which justice and respect for the 
obligations arising from treaties and other sources of international 
law can be maintained, and 

to promote social progress and better standards of life in larger 
freedom, 

and for these ends 

to practise tolerance and live together in peace with one another 
as good neighbours, and 

to unite our strength to maintain international peace and security, 
and 

to ensure, by the acceptance of principles and the institution of 
methods, that armed force shall not be used, save in the common 
interest, and 

to employ international machinery for the promotion of the econo- 
mic and social advancement of all peoples, have resolved to combine 
our efforts to accomplish these aims. 

1 H.M. Stationery Office for United Nations Information Organization, 1945. 

2 See Addendum, p. 267. Statement by the Delegations of the Four Sponsoring 
Governments on Voting Procedure in the Security Council, June 7, 1945. 



SAN FRANCISCO CONFERENCE 

Accordingly, our respective Governments, through representatives 
assembled in the City of San Francisco, who have exhibited their full 
powers found to be in good and due form, have agreed to the present 
Charter of the United Nations and do hereby establish an inter- 
national organization to be known as the United Nations. 



CHAPTER I 

PURPOSES AND PRINCIPLES 

Article i 
The Purposes of the United Nations are: 

1. To maintain international peace and security, and to that end: 
to take effective collective measures for the prevention and removal 
of threats to the peace and for the suppression of acts of aggression 
or other breaches of the peace, and to bring about by peaceful means, 
and in conformity with the principles of justice and international 
law, adjustment or settlement of international disputes or situations 
which might lead to a breach of the peace; 

2. To develop friendly relations among nations based on respect 
for the principle of equal rights and self-determination of peoples, 
and to take other appropriate measures to strengthen universal 
peace ; 

3. To achieve international co-operation in solving international 
problems of an economic, social, cultural, or humanitarian charac- 
ter, and in promoting and encouraging respect for human rights and 
for fundamental freedoms for all without distinction as to race, sex, 
language, or religion; and 

4. To be a centre for harmonizing the actions of nations in the 
attainment of these common ends. 

Article 2 

The Organization and its Members, in pursuit of the purposes 
stated in Article i , shall act in accordance with the following 
principles: 

1 . The Organization is based on the principle of the sovereign 
equality of all its members. 

2. All Members, in order to ensure to all of them the rights and 
benefits resulting from membership, shall fulfil in good faith the 
obligations assumed by them in accordance with the present Charter. 

3. All Members shall settle their international disputes by peaceful 
means in such a manner that international peace and security, and 
justice, are not endangered. 



SAN FRANCISCO CONFERENCE 

4. All Members shall refrain in their international relations from 
the threat or use offeree against the territorial integrity or political 
independence of any State, or in any other manner inconsistent 
with the Purposes of the United Nations. 

5. All Members shall give the United Nations every assistance in 
any action it takes in accordance with the present Charter, and shall 
refrain from giving assistance to any State against which the United 
Nations is taking preventive or enforcement action. 

6. The Organization shall ensure that States which are not Mem- 
bers of the United Nations act in accordance with these Principles so 
far as may be necessary for the maintenance of international peace 
and security. 

7. Nothing contained in the present Charter shall authorize the 
United Nations to intervene in matters which are essentially within 
the domestic jurisdiction of any State or shall require the Members 
to submit such matters to settlement under the present Charter; but 
this principle shall not prejudice the application of enforcement 
measures under Chapter VII. 

CHAPTER II 

MEMBERSHIP 

Article 3 

The original members of the United Nations shall be the states 
which, having participated in the United Nations Conference on 
International Organization at San Francisco, or having previously 
signed the Declaration by United Nations of January i, 1942, sign 
the present Charter and ratify it in accordance with Article 1 10. 

Article 4 

1. Membership in the United Nations is open to all other peace- 
loving states which accept the obligations contained in the present 
Charter and, in the judgement of the Organization, are able and 
willing to carry out these obligations. 

2. The admission of any such state to membership in the United 
Nations will be effected by a decision of the General Assembly upon 
the recommendation of the Security Council. 

Article 5 

A Member of the United Nations against which preventive or en- 
forcement action has been taken by the Security Council may be 
suspended from the exercise of the rights and privileges of member- 
ship by the General Assembly upon the recommendation of the 

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SAN FRANCISCO CONFERENCE 

Security Council. The exercise of these rights and privileges may be 
restored by the Security Council. 

Article 6 

A Member of the United Nations which has persistently violated 
the Principles contained in the present Charter may be expelled 
from the Orgexnization by the General Assembly upon the recom- 
mendation of the Security Council. 

CHAPTER III 
ORGANS 

Article 7 

1. There are established as the principal organs of the United 
Nations: a General Assembly, a Security Council, an Economic and 
Social Council, a Trusteeship Council, an International Court of 
Justice and a Secretariat. 

2. Such subsidiary organs as may be found necessary may be 
established in accordance with the present Charter. 

Article 8 

The United Nations shall place no restrictions on the eligibility of 
men and women to participate in any capacity and under conditions 
of equality in its principal and subsidiary organs. 

CHAPTER IV 

THE GENERAL ASSEMBLY 
COMPOSITION 

Article g 

1 . The General Assembly shall consist of all the Members of the 
United Nations. 

2. Each Member shall have not more than five representatives in 
the General Assembly. 

FUNCTIONS AND POWERS 

Article 10 

The General Assembly may discuss any questions or any matters 
within the scope of the present Charter or relating to the powers 
and functions of any organs provided for in the present Charter, and, 
except as provided in Article 12, may make recommendations to the 
members of the United Nations or to the Security Council or to 
both on any such questions or matters. 



SAN FRANCISCO CONFERENCE 

Article n 

1. The General Assembly may consider the general principles of 
co-operation in the maintenance of international peace and security, 
including the principles governing disarmament and the regulation 
of armaments, and may make recommendations with regard to such 
principles to the Members or to the Security Council or both. 

2. The General Assembly may discuss any questions relating to 
the maintenance of international peace and security brought before 
it by any Member of the United Nations, or by the Security Council, 
or by a state which is not a member of the United Nations in ac- 
cordance with Article 35, paragraph 2, and, except as provided in 
Article 12, may make recommendations with regard to any such 
questions to the state or states concerned or to the Security Council 
or to both. Any such question, on which action is necessary, shall be 
referred to the Security Council by the General Assembly either 
before or after discussion. 

3. The General Assembly may call the attention of the Security 
Council to situations which are likely to endanger international 
peace and security. 

4. The powers of the General Assembly set forth in this article shall 
not limit the general scope of Article 10. 

Article 12 

1 . While the Security Council is exercising in respect of any dispute 
or situation the functions assigned to it in the present Charter, the 
General Assembly shall not make any recommendation with regard 
to that dispute or situation unless the Security Council so requests. 

2. The Secretary-General, with the consent of the Security Coun- 
cil, shall notify the General Assembly at each session of any matters 
relative to the maintenance of international peace and security which 
are being dealt with by the Security Council and shall similarly 
notify the General Assembly, or the Members of the United Nations 
if the General Assembly is not in session, immediately the Security 
Council ceases to deal with such matters. 

Article 13 

i. The General Assembly shall initiate studies and make recom- 
mendations for the purpose of: 

(a) Promoting international co-operation in the political field and 
encouraging the progressive development of international law 
and its codification; 

(b) Promoting international co-operation in the economic, social, 
cultural, educational, and health fields, and assisting in the 

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SAN FRANCISCO CONFERENCE 

realization of human rights and fundamental freedoms for all 
without distinction as to race, sex, language, or religion. 

2. The further responsibilities, functions, and powers of the 
General Assembly with respect to matters mentioned in paragraph 
i (b) above are set forth in Chapters IX and X. 

Article 14 

Subject to the provisions of Article 12, the General Assembly may 
recommend measures for the peaceful adjustment of any situation, 
regardless of origin, which it deems likely to impair the general wel- 
fare or friendly relations among nations, including situations re- 
sulting from a violation of the provisions of the present Charter 
setting forth the Purposes and Principles of the United Nations. 

Article /j 

1. The General Assembly shall receive and consider annual and 
special reports from the Security Council; these reports include an 
account of the measures that the Security Council has decided upon 
or taken to maintain international peace and security. 

2. The General Assembly shall receive arid consider reports from 
other organs of the United Nations. 

Article 16 

The General Assembly shall perform such functions with respect 
to the international trusteeeship system as arc assigned to it under 
Chapters XII and XIII, including the approval of the trusteeship 
agreements for areas not designated as strategic. 

Article ij 

1. The General Assembly shall consider and approve the budget 
of the Organization. 

2. The expenses of the Organization shall be borne by the Mem- 
bers as apportioned by the General Assembly. 

3. The General Assembly shall consider and approve any financial 
and budgetary arrangements with specialized agencies referred to in 
Article 57 and shall examine the administrative budgets of such 
specialized agencies with a view to making recommendations to the 
agencies concerned. 

VOTING 
Article 18 

1 . Each member of the General Assembly shall have one vote. 

2. Decisions of the General Assembly on important questions shall 
be made by a two-thirds majority of the members present and voting. 

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SAN FRANCISCO CONFERENCE 

These questions shall include: recommendations with respect to the 
maintenance of international peace and security, the election of the 
non-permanent members of the Security Council, the election of the 
members of the Economic and Social Council, the election of mem- 
bers of the Trusteeship Council in accordance with paragraph i (c) 
of Article 86, the admission of new Members to the United Nations, 
the suspension of the rights and privileges of membership, the ex- 
pulsion of Members, questions relating to the operation of the trus- 
teeship system, and budgetary questions. 

3. Decisions on other questions, including the determination of 
additional categories of questions to be decided by a two-thirds 
majority, shall be made by a majority of the members present and 
voting. 

Article 19 

A member of the United Nations which is in arrears in the pay- 
ment of its financial contributions to the Organization shall have no 
vote in the General Assembly if the amount of its arrears equals or 
exceeds the amount of the contributions due from it for the preceding 
two full years. The General Assembly may, nevertheless, permit 
such a Member to vote if it is satisfied that the failure to pay is due to 
conditions beyond the control of the Member. 

PROCEDURE 

Article 20 

The General Assembly shall meet in regular annual sessions and 
in such special sessions as occasion may require. Special sessions shall 
be convoked by the Secretary-General at the request of the Security 
Council or of a majority of the Members of the United Nations. 

Article 21 

The General Assembly shall adopt its own rules of procedure. It 
shall elect its President for each session. 

Article 22 

The General Assembly may establish such subsidiary organs as it 
deems necessary for the performance of its functions. 

CHAPTER V 

THE SECURITY COUNCIL 
COMPOSITION 

Article 23 

i. The Security Council shall consist of 1 1 Members of the United 
Nations. The Republic of China, France, the Union of Soviet 

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SAN FRANCISCO CONFERENCE 

Socialist Republics, the United Kingdom of Great Britain and Nor- 
thern Ireland, and the United States of America shall be permanent 
members of the Security Council. The General Assembly shall elect 
six other Members of the United Nations to be non-permanent 
members of the Security Council, due regard being specially paid, 
in the first instance, to the contribution of Members of the United 
Nations to the maintenance of international peace and security and 
to the other purposes of the Organization, and also to equitable 
geographical distribution. 

2. The non-permanent members of the Security Council shall be 
elected for a term of two years. In the first election of the non- 
permanent members, however, three shall be chosen for a term of 
one year. A retiring member shall not be eligible for immediate 
re-election. 

3. Each member of the Security Council shall have one repre- 
sentative. 

FUNCTIONS AND POWERS 

Article 24 

1. In order to ensure prompt and effective action by the United 
Nations, its Members confer on the Security Council primary 
responsibility for the maintenance of international peace and se- 
curity, and agree that in carrying out its duties under this respon- 
sibility the Security Council acts on their behalf. 

2. In discharging these duties the Security Council shall act in 
accordance with the Purposes and Principles of the United Nations. 
The specific powers granted to the Security Council for the dis- 
charge of these duties are laid down in Chapters VI, VII, VIII and 
XII. 

3. The Security Council shall submit annual and, when necessary, 
special reports to the General Assembly for its consideration. 

Article 25 

The Members of the United Nations agree to accept and carry 
out the decisions of the Security Council in accordance with the 
present Charter. 

Article 26 

In order to promote the establishment and maintenance of inter- 
national peace and security with the least diversion for armaments of 
the world's human and economic resources, the Security Council 
shall be responsible for formulating, with the assistance of the Mili- 
tary Staff Committee referred to in Article 47, plans to be submitted 
to the Members of the United Nations for the establishment of a 
system for the regulation of armaments. 

155 



SAN FRANCISCO CONFERENCE 

VOTING 

Article 2J 

1. Each member of the Security Council shall have one vote. 

2. Decisions of the Security Council on procedural matters shall be 
made by an affirmative vote of seven members. 

3. Decisions of the Security Council on all other matters shall be 
made by an affirmative vote of seven members including the con- 
curring votes of the permanent members; provided that, in decisions 
under Chapter VI and under paragraph 3 of Article 52, a party to a 
dispute shall abstain from voting. 

PROCEDURE 
Article 28 

1. The Security Council shall be so organized as to be able to 
function continuously. Each member of the Security Council shall 
for this purpose be represented at all times at the seat of the Or- 
ganization. 

2. The Security Council shall hold periodic meetings at which 
each of its members may, if it so desires, be represented by a member 
of the government or by some other specially designated representa- 
tive. 

3. The Security Council may hold meetings at such places other 
than the seat of the Organization as in its judgement will best facili- 
tate its work. 

Article 29 

The Security Council may establish subsidiary organs as it deems 
necessary for the performance of its functions. 

Article 30 

The Security Council shall adopt its own rules of procedure, in- 
cluding the method of selecting its President. 

Article 31 

Any Member of the United Nations which is not a member of the 
Security Council may participate, without vote, in the discussion of 
any question brought before the Security Council whenever the latter 
considers that the interests of that Member are specially affected. 

Article 32 

Any Member of the United Nations which is not a member of the 
Security Council or any state which is not a Member of the United 
Nations, if it is a party to a dispute under consideration by the 

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Security Council, shall be invited to participate, without vote, in the 
discussion relating to the dispute. 

The Security Council shall lay down such conditions as it deems 
just for the participation of a state which is not a Member of the 
United Nations. 

CHAPTER VI 

PACIFIC SETTLEMENT OF DISPUTES 

Article 33 

1. The parties to any dispute, the continuance of which is likely 
to endanger the maintenance of international peace and security, 
shall, first of all, seek a solution by negotiation, inquiry, mediation, 
conciliation, arbitration, judicial settlement, resort to regional agen- 
cies or arrangements, or other peaceful means of their own choice. 

2. The Security Council shall, when it deems necessary, call upon 
the parties to settle their dispute by such means. 

Article 34 

The Security Council may investigate any dispute, or any situa- 
tion which might lead to international friction or give rise to a dis- 
pute, in order to determine whether the continuance of the dispute 
or situation is likely to endanger the maintenance of international 
peace and security. 

Article 35 

1 . Any Member of the United Nations may bring any dispute or 
any situation of the nature referred to in Article 34 to the attention 
of the Security Council or of the General Assembly. 

2. A state which is not a Member of the United Nations may bring 
to the attention of the Security Council or of the General Assembly 
any dispute to which it is a party, if it accepts in advance, for the 
purposes of the dispute, the obligations of pacific settlement pro- 
vided in the present Charter. 

3. The proceedings of the General Assembly in respect of matters 
brought to its attention under this article will be subject to the 
provisions of Articles n and 12. 

Article 36 

1. The Security Council may, at any stage of a dispute of the 
nature referred to in Article 33 or of a situation of like nature, re- 
commend appropriate procedures or methods of adjustment. 

2. The Security Council should take into consideration any pro- 
cedures for the settlement of the dispute which have already been 
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SAN FRANCISCO CONFERENCE 

3. In making recommendations under this Article the Security 
Council should also take into consideration that legal disputes 
should as a general rule be referred by the parties to the Internation- 
al Court of Justice in accordance with the provisions of the Statute 
of the Court. 

Article yj 

1. Should the parties to a dispute of the nature referred to in 
Article 33 fail to settle it by the means indicated in that article, they 
shall refer it to the Security Council. 

2. If the Security Council deems that the continuance of the dis- 
pute is in fact likely to endanger the maintenance of international 
peace and security, it shall decide whether to take action under 
Article 36 or to recommend such terms of settlement as it may con- 
sider appropriate. 

Article 38 

Without prejudice to the provisions of Articles 33-37, the Security 
Council may, if all the parties to any dispute so request, make 
recommendations to the parties with a view to a pacific settlement of 
the dispute. 

CHAPTER VII 

ACTION WITH RESPECT TO THREATS TO THE PEACE, BREACHES OF THE 
PEACE, AND ACTS OF AGGRESSION 

Article 39 

The Security Council shall determine the existence of any threat 
to the peace, breach of the peace, or act of aggression and shall make 
recommendations, or decide what measures shall be taken in accor- 
dance with Articles 41 and 42, to maintain or restore international 
peace and security. 

Article 40 

In order to prevent an aggravation of the situation, the Security 
Council may, before making the recommendations or deciding upon 
the measures provided for in Article 39, call upon the parties con- 
cerned to comply with such provisional measures as it deems neces- 
sary or desirable. Such provisional measures shall be without 
prejudice to the rights, claims or position of the parties concerned. 
The Security Council shall duly take account of failure to comply 
with such provisional measures. 

Article 41 

The Security Council may decide what measures not involving 
the use of armed force are to be employed to give effect to its 

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decisions, and it may call upon the Members of the United Nations to 
apply such measures. These may include complete or partial inter- 
ruption of economic relations and of rail, sea, air, postal, telegraphic, 
radio, and other means of communication, and the severance of 
diplomatic relations. 

Article 42 

Should the Security Council consider that measures provided for 
in Article 41 would be inadequate or have proved to be inadequate, 
it may take such action by air, sea, or land forces as may be neces- 
sary to maintain or restore international peace and security. Such 
action may include demonstrations, blockade and other operations 
by air, sea or land forces of Members of the United Nations. 

Article 43 

1. All Members of the United Nations, in order to contribute to 
the maintenance of international peace and security, undertake to 
make available to the Security Council, on its call and in accordance 
with a special agreement or agreements, armed forces, assistance, 
and facilities, including rights of passage, necessary for the purpose of 
maintaining international peace and security. 

2. Such agreement or agreements shall govern the numbers and 
types of forces, their degree of readiness and general location, and 
the nature of the facilities and assistance to be provided. 

3. The agreement or agreements shall be negotiated as soon as 
possible on the initiative of the Security Council. They shall be con- 
cluded between the Security Council and Members or between the 
Security Council and groups of Members and shall be subject to 
ratification by the signatory states in accordance with their respec- 
tive constitutional processes. 

Article 44 

When the Security Council has decided to use force it shall, be- 
fore calling upon a Member not represented on it to provide armed 
forces in fulfilment of the obligations assumed under Article 43, 
invite that member, if the member so desires, to participate in the 
decisions of the Security Council concerning the employment of 
contingents of that Member's armed forces. 

Article 45 

In order to enable the United Nations to take urgent military 
measures, Members shall hold immediately available national air- 
force contingents for combined international enforcement action. 
The strength and degree of readiness of these contingents and plans 

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for their combined action shall be determined, within the limits laid 
down in the special agreement or agreements referred to in Article 
43 by the Security Council with the assistance of the Military Staff 
Committee. 

Article 46 

Plans for the application of armed force shall be made by the 
Security Council with the assistance of the Military Staff Committee. 

Article 47 

1. There shall be established a Military Staff Committee to advise 
and assist the Security Council on all questions relating to the Se- 
curity Council's military requirements for the maintenance of inter- 
national peace and security, the employment and command of forces 
placed at its disposal, the regulation of armaments, and possible 
disarmament. 

2. The Military Staff Committee shall consist of the Chiefs of 
Staff of the permanent members of the Security Council or their 
representatives. Any member of the United Nations not permanently 
represented on the Committee shall be invited by the Committee to 
be associated with it when the efficient discharge of the Committee's 
responsibilities requires the participation of that member in its 
work. 

3. The Military Staff Committee shall be responsible under the 
Security Council for the strategic direction of any armed forces 
placed at the disposal of the Security Council. Questions relating to 
the command of such forces shall be worked out subsequently. 

4. The Military Staff Committee, with the authorization of the 
Security Council and after consultation with appropriate regional 
agencies, may establish regional sub-committees. 

Article 48 

1 . The action required to carry out the decisions of the Security 
Council for the maintenance of international peace and security 
shall be taken by all the Members of the United Nations or by some 
of them, as the Security Council may determine. 

2. Such decisions shall be carried out by the Members of the 
United Nations directly and through their action in the appropriate 
international agencies of which they are members. 

Article 49 

The Members of the United Nations shall join in affording mutual 
assistance in carrying out the measures decided upon by the Se- 
curity Council. 

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Article 50 

If preventive or enforcement measures against any State are taken 
by the Security Council, any other State, whether a Member of the 
United Nations or not, which finds itself confronted with special 
economic problems arising from the carrying out of those measures, 
shall have the right to consult the Security Council with regard to a 
solution of those problems. 

Article 51 

Nothing in the present Charter shall impair the inherent right of 
individual or collective self-defence if an armed attack occurs against 
a member of the United Nations, until the Security Council has taken 
the measures necessary to maintain international peace and security. 
Measures taken by Members in the exercise of this right of self- 
defence shall be immediately reported to the Security Council and 
shall not in any way affect the authority and responsibility of the 
Security Council under the present Charter to take at any time such 
action as it deems necessary in order to maintain or restore inter- 
national peace and security. 

CHAPTER VIII 

REGIONAL ARRANGEMENTS 

Article 52 

1. Nothing in the present Charter precludes the existence of 
regional arrangements or agencies for dealing with such matters re- 
lating to the maintenance of international peace and security as are 
appropriate for regional action, provided that such arrangements or 
agencies and their activities are consistent with the Purposes and 
Principles of the United Nations. 

2. The members of the United Nations entering into such arrange- 
ments or constituting such agencies shall make every effort to achieve 
pacific settlement of local disputes through such regional arrange- 
ments or by such regional agencies before referring them to the 
Security Council. 

3. The Security Council shall encourage the development of 
pacific settlement of local disputes through such regional arrange- 
ments or by such regional agencies either on the initiative of the 
states concerned or by reference from the Security Council. 

4. This Article in no way impairs the application of Articles 34 
and 35. 

Article 53 

i. The Security Council shall, where appropriate, utilize such 
regional arrangements or agencies for enforcement action under its 

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authority. But no enforcement action shall be taken under regional 
arrangements, or by regional agencies without the authorization of 
the Security Council, with the exception of measures against any 
enemy State, as denned in paragraph 2 of this Article, provided for 
pursuant to Article 107 or in regional arrangements directed against 
renewal of aggressive policy on the part of any such state, until such 
time as the Organization may, on request of the governments con- 
cerned, be charged with the responsibility for preventing further 
aggression by such a state. 

2. The term enemy State as used in paragraph i of this Article 
applies to any state which during the Second World War has been 
an enemy of any signatory of the present Charter. 

Article 54 

The Security Council shall at all times be kept fully informed of 
activities undertaken or in contemplation under regional arrange- 
ments or by regional agencies for the maintenance of international 
peace and security. 

CHAPTER IX 

INTERNATIONAL ECONOMIC AND SOCIAL CO-OPERATION 

Article 55 

With a view to the creation of conditions of stability and well- 
being which are necessary for peaceful and friendly relations among 
nations based on respect for the principle of equal rights and self- 
determination of peoples, the United Nations shall promote: 

(a) higher standards of living, full employment, and conditions of 
economic and social progress and development; 

(b) solutions of international economic, social, health and related 
problems; and international cultural and educational co- 
operation; and 

(c) universal respect for, and observance of, human rights and 
fundamental freedoms for all without distinction as to race, 
sex, language or religion. 

Article 56" 

All Members pledge themselves to take joint and separate action 
in co-operation with the Organization for the achievement of the 
purposes set forth in Article 55. 

Article 57 

I. The various specialized agencies, established by inter-govern- 
mental agreement and having wide international responsibilities, 

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as defined in their basic instruments, in economic, social, cultural, 
educational, health and related fields, shall be brought into relation- 
ship with the United Nations in accordance with the provisions of 
Article 63. 

2. Such agencies thus brought into relationship with the United 
Nations are hereinafter referred to as specialized agencies. 

Article 58 

The Organization shall make recommendations for the co-ordina- 
tion of the policies and activities of the specialized agencies. 

Article 59 

The Organization shall, where appropriate, initiate negotiations 
among the states concerned for the creation of any new specialized 
agencies required for the accomplishment of the purposes set forth 
in Article 55. 

Article 60 

Responsibility for the discharge of the functions of the Organiza- 
tion set forth in this Chapter shall be vested in the General Assembly 
and, under the authority of the General Assembly, in the Economic 
and Social Council, which shall have for this purpose the powers set 
forth in Chapter X. 

CHAPTER X 

THE ECONOMIC AND SOCIAL COUNCIL 
COMPOSITION 

Article 61 

1 . The Economic and Social Council shall consist of 1 8 Members 
of the United Nations elected by the General Assembly. 

2. Subject to the provisions of paragraph 3, six members of the 
Economic and Social Council shall be elected each year for a term of 
three years. A retiring member shall be eligible for immediate 
re-election. 

3. At the first election, 18 members of the Economic and Social 
Council shall be chosen, the term of office of six members so chosen 
shall expire at the end of one year, and of six other members at the 
end of two years, in accordance with arrangements made by the 
General Assembly. 

4. Each member of the Economic and Social Council shall have 
one representative. 



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FUNCTIONS AND POWERS 

Article 62 

1. The Economic and Social Council may make or initiate 
studies and reports with respect to international economic, social, 
cultural, educational, health and related matters and may make 
recommendations with respect to any such matters to the General 
Assembly, to the Members of the United Nations, and to the 
specialized agencies concerned. 

2. It may make recommendations for the purpose of promoting 
respect for, and observance of, human rights and fundamental free- 
doms for all. 

3. It may prepare draft conventions for submission to the General 
Assembly, with respect to matters falling within its competence. 

4. It may call, in accordance with the rules prescribed by the 
United Nations, international conferences on matters falling within 
its competence. 

Article 63 

1. The Economic and Social Council may enter into agreements 
with any of the agencies referred to in Article 57, defining the terms 
on which the agency concerned shall be brought into relationship 
with the United Nations. Such agreements shall be subject to ap- 
proval by the General Assembly. 

2. It may co-ordinate the activities of the specialized agencies 
through consultation with and recommendations to such agencies 
and through recommendations to the General Assembly and to the 
Members of the United Nations. 

Article 64 

1 . The Economic and Social Council may take appropriate steps 
to obtain regular reports from the specialized agencies. It may make 
arrangements with the Members of the United Nations and with 
the specialized agencies to obtain reports on the steps taken to give 
effect to its own recommendations and to recommendations on 
matters falling within its competence made by the General 
Assembly. 

2. It may communicate its observations on these reports to the 
General Assembly. 

Article 65 

The Economic and Social Council may furnish information to the 
Security Council and shall assist the Security Council upon its 
request. 

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Article 66 

1 . The Economic and Social Council shall perform such functions 
as fall within its competence in connection with the carrying out of 
the recommendations of the General Assembly. 

2. It rnay, with the approval of the General Assembly, perform 
services at the request of Members of the United Nations and at the 
request of specialized agencies. 

3. It shall perform such other functions as are specified elsewhere 
in the present Charter or as may be assigned to it by the General 
Assembly. 

VOTING 
Article 67 

1 . Each member of the Economic and Social Council shall have 
one vote. 

2. Decisions of the Economic and Social Council shall be made by 
a majority of the members present and voting. 

PROCEDURE 

Article 68 

The Economic and Social Council shall set up commissions in 
economic and social fields and for the promotion of human rights, 
and such other commissions as may be required for the performance 
of its functions. 

Article 69 

The Economic and Social Council shall invite any Member of the 
United Nations to participate, without vote, in its deliberations on 
any matter of particular concern to that Member. 

Article jo 

The Economic and Social Council may make arrangements for 
representatives of the specialized agencies to participate, without 
vote, in its deliberations and in those of the commissions established 
by it, and for its representatives to participate in the deliberations 
of the specialized agencies. 

Article ji 

The Economic and Social Council may make suitable arrange- 
ments for consultation with non-governmental organizations which 
are concerned with matters within its competence. 

Such arrangements may be made with international organizations 
and, where appropriate, with national organizations after consulta- 
tion with the Member of the United Nations concerned. 



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Article 72 

1 . The Economic and Social Council shall adopt its own rules of 
procedure, including the method of selecting its President. 

2. The Economic and Social Council shall meet as required in 
accordance with its rules, which shall include provision for the con- 
vening of meetings on request of a majority of its members. 

CHAPTER XI 

DECLARATION REGARDING NON-SELF-GOVERNING TERRITORIES 

Article 73 

Members of the United Nations which have or assume respon- 
sibilities for the administration of territories whose peoples have not 
yet attained a full measure of self-government recognize the prin- 
ciple that the interests of the inhabitants of these territories are para- 
mount, and accept as a sacred trust the obligation to promote to the 
utmost, within the system of international peace and security 
established by the present Charter, the well-being of the inhabitants 
of these territories, and to this end: 

(a) To ensure, with due respect for the culture of the peoples con- 
cerned, their political, economic, social and educational ad- 
vancement, their just treatment, and their protection against 
abuses; 

(b) To develop self-government, to take due account of the politi- 
cal aspirations of the peoples, and to assist them in the pro- 
gressive development of their free political institutions, ac- 
cording to the particular circumstances of each territory and 
its peoples and their varying stages of advancement; 

(c) To further international peace and security; 

(d) To promote constructive measures of development, to en- 
courage research, and to co-operate with one another and, 
when and where appropriate, with specialized international 
bodies with a view to the practical achievement of the social, 
economic and scientific purposes set forth in this Article; 
and 

(e) To transmit regularly to the Secretary-General for information 
purposes, subject to such limitation as security and con- 
stitutional considerations may require, statistical and other 
information of a technical nature relating to economic, social 
and educational conditions in the territories for which they are 
respectively responsible other than those territories to which 
Chapters XII and XIII apply. 

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Article 74 

Members of the United Nations also agree that their policy in 
respect of the territories to which this Chapter applies, no less than in 
respect of their metropolitan areas, must be based on the general 
principle of good neighbourliness due account being taken of the 
interests and well-being of the rest of the world, in social, economic 
and commercial matters. 

CHAPTER XII 

INTERNATIONAL TRUSTEESHIP SYSTEM 

Article 75 

The United Nations shall establish under its authority an inter- 
national trusteeship system for the administration and supervision 
of such territories as may be placed thereunder by subsequent in- 
dividual agreements. These territories are hereinafter referred to as 
Trust Territories. 

Article 76" 

The basic objectives of the trusteeship system, in accordance with 
the Purposes of the United Nations laid down in Article i of the 
present Charter, shall be: 

(a) To further international peace and security; 

(b) To promote the political, economic, social and educational 
advancement of the inhabitants of the Trust Territories, and 
their progressive development towards self-government or 
independence as may be appropriate to the particular cir- 
cumstances of each territory and its peoples and the freely 
expressed wishes of the people concerned, and as may be 
provided by the terms of each trusteeship agreement; 

(c) To encourage respect for human rights and for fundamental 
freedoms for all without distinction as to race, sex, language, 
or religion, and to encourage recognition of the interdepen- 
dence of the peoples of the world; and 

(d) To ensure equal treatment in social, economic and commer- 
cial matters for all Members of the United Nations and their 
nationals, and also equal treatment for the latter in the ad- 
ministration of justice, without prejudice to the attainment of 
the foregoing objectives and subject to the provisions of Article 
80. 

Article 77 

i. The trusteeship system shall apply to such territories in the 
following categories as may be placed thereunder by means of 
trusteeship agreements: 

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(a) Territories now held under mandate; 

(b) Territories which may be detached from enemy states as a 

result of the Second World War; and 

(c) Territories voluntarily placed under the system by states 
responsible for their administration. 

2. It will be a matter for subsequent agreement as to which ter- 
ritories in the foregoing categories will be brought under the 
trusteeship system and upon what terms. 

Article 78 

The trusteeship system shall not apply to territories which have 
become Members of the United Nations, relationship among which 
shall be based on respect for the principle of sovereign equality. 

Article 79 

The terms of trusteeship for each territory to be placed under the 
trusteeship system, including any alteration or amendment, shall be 
agreed upon by the states directly concerned, including the man- 
datory power in the case of territories held under mandate by a 
Member of the United Nations, and shall be approved as provided 
for in Articles 83 and 85. 

Article 80 

1 . Except as may be agreed upon in individual trusteeship agree- 
ments, made under Articles 77, 79 and 81, placing each territory 
under the trusteeship system, and until such agreements have been 
concluded, nothing in this Chapter shall be construed in or of itself 
to alter in any manner the rights whatsoever of any states or any 
peoples or the terms of existing international instruments to which 
Members of the United Nations may respectively be parties. 

2. Paragraph I of this Article shall not be interpreted as giving 
grounds for delay or postponement of the negotiation and con- 
clusion of agreements for placing mandated and other territories 
under the trusteeship system as provided for in Article 77. 

Article 81 

The trusteeship agreement shall in each case include the terms 
under which the trust territory will be administered and designate 
the authority which will exercise the administration of the trust 
territory. Such authority, hereinafter called the administering 
authority, may be one or more states or the Organization itself. 

Article 82 

There may be designated, in any trusteeship agreement, a strate- 
gic area or areas which may include part or all of the trust territory 

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to which the agreement applies, without prejudice to any special 
agreement or agreements made under Article 43. 

Article 83 

1 . All functions of the United Nations relating to strategic areas, 
including the approval of the terms of the trusteeship agreements 
and of their alteration or amendment, shall be exercised by the 
Security Council. 

2. The basic objectives set forth in Article 76 shall be applicable 
to the people of each strategic area. 

3. The Security Council shall, subject to the provisions of the 
trusteeship agreements and without prejudice to security considera- 
tions, avail itself of the assistance of the Trusteeship Council to per- 
form those functions of the United Nations under the trusteeship 
system relating to political, economic, social, and educational matters 
in the strategic areas. 

Article 84 

It shall be the duty of the administering authority to ensure that 
the trust territory shall play its part in the maintenance of inter- 
national peace and security. To this end the administering authority 
may make use of volunteer forces, facilities, and assistance from the 
trust territory in carrying out the obligations towards the Security 
Council undertaken in this regard by the administering authority, 
as well as for local defence and the maintenance of law and order 
within the trust territory. 

Article #5 

1 . The functions of the United Nations with regard to trusteeship 
agreements for all areas not designated as strategic, including the 
approval of the terms of the trusteeship agreements and of their 
alteration or amendment, shall be exercised by the General As- 
sembly. 

2. The Trusteeship Council, operating under the authority of the 
General Assembly, shall assist the General Assembly in carrying out 
these functions. 

CHAPTER XIII 

THE TRUSTEESHIP COUNCIL 
COMPOSITION 

Article 86 

i. The Trusteeship Council shall consist of the following Members 
of the United Nations : 

(a) Those Members administering trust territories; 

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(b) Such of those members mentioned by name in Article 23 as 
are not administering trust territories; and 

(c) As many other Members elected for three-year terms by the 
General Assembly as may be necessary to ensure that the total 
number of members of the Trusteeship Council is equally 
divided between those Members of the United Nations which 
administer trust territories and those which do not. 

2. Each member of the Trusteeship Council shall designate one 
specially qualified person to represent it therein. 

FUNCTIONS AND POWERS 

Article 87 

The General Assembly and, under its authority, the Trusteeship 
Council, in carrying out their functions, may: 

(a) Consider reports submitted by the administering authority; 

(b) Accept petitions and examine them in consultation with the 
administering authority; 

(c) Provide for periodic visits to the respective Trust Territories 
at times agreed upon with the administering authority; 
and 

(d) Take these and other actions in conformity with the terms of 
the trusteeship agreements. 

Article 88 

The Trusteeship Council shall formulate a questionnaire on the 
political, economic, social and educational advancement of the in- 
habitants of each trust territory, and the administering authority 
for each trust territory within the competence of the General As- 
sembly shall make an annual report to the General Assembly upon 
the basis of such a questionnaire. 

VOTING 

Article 8g 

1 . Each member of the Trusteeship Council shall have one vote. 

2. Decisions of the Trusteeship Council shall be made by a major- 
ity of the members present and voting. 

PROCEDURE 

Article go 

i. The Trusteeship Council shall adopt its own rules and pro- 
cedure, including the method of selecting its President. 

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2. The Trusteeship Council shall meet as required in accordance 
with its rules, which shall include provision for the convening of 
meetings on the request of a majority of its members. 

Article 91 

The Trusteeship Council shall, when appropriate, avail itself of 
the assistance of the Economic and Social Council and of the special- 
ized agencies in regard to matters with which they are respectively 
concerned. 

CHAPTER XIV 

THE INTERNATIONAL COURT OF JUSTICE 

Article 92 

The International Court of Justice shall be the principal judicial 
organ of the United Nations. It shall function in accordance with the 
annexed Statute, which is based upon the Statute of the Permanent 
Court of International Justice and forms an integral part of the 
present Charter. 

Article 93 

1. All Members of the United Nations are ipso facto parties to the 
Statute of the International Court of Justice. 

2. A state which is not a Member of the United Nations may be- 
come a party to the Statute of the International Court of Justice on 
conditions to be determined in each case by the General Assembly 
upon the recommendation of the Security Council. 

Article 94 

1. Each Member of the United Nations undertakes to comply 
with the decision of the International Court of Justice in any case to 
which it is a party. 

2. If any party to a case fails to perform the obligations incumbent 
upon it under a judgment rendered by the Court, the other party 
may have recourse to the Security Council, which may, if it deems 
necessary, make recommendations or decide upon measures to be 
taken to give effect to the judgment. 

Article 95 

Nothing in the present Charter shall prevent Members of the 
United Nations from entrusting the solution of their differences to 
other tribunals by virtue of agreements already in existence or which 
may be concluded in the future. 



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Article 96 

1 . The General Assembly or the Security Council may request the 
International Court of Justice to given an advisory opinion on any 
legal question. 

2. Other organs of the United Nations and specialized agencies, 
which may at any time be so authorized by the General Assembly, 
may also request advisory opinions of the Court on legal questions 
arising within the scope of their activities. 

CHAPTER XV 

THE SECRETARIAT 

Article gj 

The Secretariat shall comprise a Secretary-General and such staff 
as the Organization may require. The Secretary-General shall be 
appointed by the General Assembly upon the recommendation of 
the Security Council. He shall be the chief administrative officer of 
the Organization. 

Article 98 

The Secretary-General shall act in that capacity in all meetings of 
the General Assembly, of the Security Council, of the Economic and 
Social Council, and of the Trusteeship Council, and shall perform 
such other functions as are entrusted to him by these organs. The 
Secretary-General shall make an annual report to the General 
Assembly on the work of the Organization. 

Article gg 

The Secretary-General may bring to the attention of the Security 
Council any matter which in his opinion may threaten the main- 
tenance of international peace and security. 

Article 100 

1 . In the performance of their duties the Secretary-General and 
the staff shall not seek or receive instructions from any government or 
from any other authority external to the Organization. They shall 
refrain from any action which might reflect on their position as in- 
ternational officials, responsible only to the Organization. 

2. Each Member of the United Nations undertakes to respect the 
exclusively international character of the responsibilities of the 
Secretary-General and the staff and not to seek to influence them in 
the discharge of their responsibilities. 



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Article 101 

1 . The staff shall be appointed by the Secretary-General under 
regulations established by the General Assembly. 

2. Appropriate staffs shall be permanently assigned to the Econo- 
mic and Social Council, the Trusteeship Council, and, as required, 
to other organs of the United Nations. These staffs shall form a part 
of the Secretariat. 

3. The paramount consideration in the employment of the staff 
and in the determination of the conditions of service shall be the 
necessity of securing the highest standards of efficiency, competence 
and integrity. Due regard shall be paid to the importance of recruit- 
ing the staff on as wide a geographical basis as possible. 



CHAPTER XVI 

MISCELLANEOUS PROVISIONS 

Article 102 

1 . Every treaty and every international agreement entered into by 
any Member of the United Nations after the present Charter comes 
into force shall as soon as possible be registered with the Secretariat 
and published by it. 

2. No party to any such treaty or international agreement which 
has not been registered in accordance with the provisions of para- 
graph i of this Article may invoke that treaty or agreement before 
any organ of the United Nations. 

Article 103 

In the event of a conflict between the obligations of the Members 
of the United Nations under the present Charter and their obliga- 
tions under any other international agreement, their obligations 
under the present Charter shall prevail. 

Article 104 

The Organization shall enjoy in the territory of each of its Mem- 
bers such legal capacity as may be necessary for the exercise of its 
functions and the fulfilment of its purposes. 

Article 105 

1 . The Organization shall enjoy in the territory of each of its 
Members such privileges and immunities as are necessary for the 
fulfilment of its purposes. 

2. Representatives of the United Nations and officials of the Or- 
ganization shall similarly enjoy such privileges and immunities as 

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are necessary for the independent exercise of their functions in con- 
nection with the Organization. 

3. The General Assembly may make recommendations with a 
view to determining the details of the application of paragraphs i 
and 2 of this Article or may propose conventions to the Members of 
the United Nations for this purpose. 

CHAPTER XVII 

TRANSITIONAL SECURITY ARRANGEMENTS 

Article 106 

Pending the coming into force of such special agreements referred 
to in Article 43 as in the opinion of the Security Council enable it to 
begin the exercise of its responsibilities under Article 42, the parties 
to the Four-Nation Declaration, signed at Moscow, October 30, 
1943, and France, shall, in accordance with the provisions of para- 
graph 5 of that Declaration, consult with one another and as oc- 
casion requires with other Members of the United Nations with a 
view to such joint action on behalf of the Organization as may be 
necessary for the purpose of maintaining international peace and 
security. 

Article 107 

Nothing in the present Charter shall invalidate or preclude action, 
in relation to any state which during the Second World War has 
been an enemy of any signatory to the present Charter, taken or 
authorized as a result of that war by the Governments having re- 
sponsibility for such action. 

CHAPTER XVIII 

AMENDMENTS 

Article 108 

Amendments to the present Charter shall come into force for all 
members of the United Nations when they have been adopted by a 
vote of two-thirds of the members of the General Assembly and rati- 
fied in accordance with their respective constitutional processes by 
two-thirds of the members of the United Nations, including all the 
permanent members of the Security Council. 

Article 109 

i . A General Conference of the Members of the United Nations 
for the purpose of reviewing the present Charter may be held at a 
date and place to be fixed by a two- thirds vote of the members of the 

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General Assembly and by a vote of any seven members of the Security 
Council. Each Member of the United Nations shall have one vote 
in the conference. 

2. Any alteration of the present Charter recommended by a two- 
thirds vote of the conference shall take effect when ratified in accor- 
dance with their respective constitutional processes by two-thirds of 
the Members of the United Nations including all the permanent 
members of the Security Council. 

3. If such a conference has not been held before the tenth annual 
session of the General Assembly following the coming into force of 
the present Charter, the proposal to call such a conference shall be 
placed on the agenda of that session of the General Assembly, and 
the conference shall be held if so decided by a majority vote of the 
members of the General Assembly and by a vote of any seven mem- 
bers of the Security Council. 

CHAPTER XIX 

RATIFICATION AND SIGNATURE 

Article no 

1. The present Charter shall be ratified by the signatory states in 
accordance with their respective constitutional processes. 

2. The ratifications shall be deposited with the Government of the 
United States of America, which shall notify all the signatory states 
of each deposit as well as the Secretary-General of the Organization 
when he has been appointed. 

3. The present Charter shall come into force upon the deposit of 
ratifications by the Republic of China, France, the Union of Soviet 
Socialist Republics, the United Kingdom of Great Britain and 
Northern Ireland, and the United States of America, and by a 
majority of the other signatory states. A protocol of the ratifications 
deposited shall thereupon be drawn up by the Government of the 
United States of America which shall communicate copies thereof 
to all the signatory States. 

4. The states signatory to the present Charter which ratify it after 
it has come into force will become original members of the United 
Nations on the date of the deposit of their respective ratifications. 

Article in 

The present Charter, of which the Chinese, French, Russian, 
English and Spanish texts are equally authentic, shall remain de- 
posited in the archives of the Government of the United States of 
America. Duly certified copies thereof shall be transmitted by that 
Government to the Governments of the other signatory states. 



SAN FRANCISCO CONFERENCE 

In faith whereof the representatives of the Governments of the 
United Nations have signed the present Charter. 

Done at the City of San Francisco the twenty-sixth day of June, 
one thousand nine hundred and forty-five. 

Representatives of the following Governments signed the Charter 



China 

Union of Soviet Socialist 

Republics 
United Kingdom of Great Britain 

and Northern Ireland 
France 
Argentina 
Australia 
Belgium 
Bolivia 
Brazil 

Byelo-Russian S.S.R. 
Canada 
Colombia 
Costa Rica 
Cuba 

Czechoslovakia 
Denmark 

Dominican Republic 
Ecuador 
Egypt 
El Salvador 
Ethiopia 
Greece 
Guatemala 
Haiti 

[Poland signed the Charter on October /j, 1945.} 

STATUTE OF THE INTERNATIONAL COURT OF JUSTICE 

Article i 

The International Court of Justice established by the Charter of 
the United Nations as the principal judicial organ of the United 
Nations shall be constituted and shall function in accordance with 
the provisions of the present Statute. 



Honduras 

India 

Iran 

Iraq 

Lebanon 

Liberia 

Luxembourg 

Mexico 

Netherlands 

New Zealand 

Nicaragua 

Norway 

Panama 

Paraguay 

Peru 

Philippine Commonwealth 

Saudi Arabia 

Syria 

Turkey 

Ukrainian S.S.R. 

Union of South Africa 

Uruguay 

Venezuela 

Yugoslavia 

United States of America 



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CHAPTER I 

ORGANIZATION OF THE COURT 

Article 2 

The Court shall be composed of a body of independent judges, 
elected regardless of their nationality from among persons of high 
moral character, who possess the qualifications required in their 
respective countries for appointment to the highest judicial offices 
or are jurisconsults of recognized competence in international law. 

Article 3 

1. The Court shall consist of fifteen members, no two of whom 
may be nationals of the same state. 

2. A person who for the purposes of membership in the Court 
could be regarded as a national of more than one state shall be 
deemed to be a national of the one in which he ordinarily exercises 
civil and political rights. 

Article 4 

1. The members of the Court shall be elected by the General 
Assembly and by the Security Council from a list of persons nomin- 
ated by the national groups in the Permanent Court of Arbitration, 
in accordance with the following provisions. 

2. In the case of Members of the United Nations not represented 
in the Permanent Court of Arbitration, candidates shall be nomin- 
ated by national groups appointed for this purpose by their Go- 
vernments under the same conditions as those prescribed for 
members of the Permanent Court of Arbitration by Article 44 of the 
Convention of The Hague of 1907 for the pacific settlement of inter- 
national disputes. 

3. The conditions under which a state which is a party to the 
present Statute but is not a Member of the United Nations may par- 
ticipate in electing the members of the Court shall, in the absence of 
a special agreement, be laid down by the General Assembly upon 
recommendation of the Security Council. 

Article 5 

i . At least three months before the date of the election, the Sec- 
retary-General of the United Nations shall address a written request 
to the members of the Permanent Court of Arbitration belonging to 
the states which are parties to the present Statute, and to the mem- 
bers of the national groups appointed under Article 4, paragraph 2, 
inviting them to undertake, within a given time, by national groups, 
the nomination of persons in a position to accept the duties of a 
member of the Court. 

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2. No group may nominate more than four persons, not more than 
two of whom shall be of their own nationality. In no case may the 
number of candidates nominated by a group be more than double 
the number of seats to be filled. 

Article 6 

Before making these nominations, each national group is recom- 
mended to consult its highest court of justice, its legal faculties and 
schools of law, and its national academies and national sections of 
international academies devoted to the study of law. 

Article 7 

1 . The Secretary-General shall prepare a list in alphabetical order 
of all the persons thus nominated. Save as provided in Article 12, 
paragraph 2, these shall be the only persons eligible. 

2. The Secretary-General shall submit this list to the General 
Assembly and to the Security Council. 

Article 8 

The General Assembly and the Security Council shall proceed 
independently of one another to elect the members of the Court. 

Article g 

At every election, the electors shall bear in. mind not only that the 
persons to be elected should individually possess the qualifications 
required, but also that in the body as a whole the representation of 
the main forms of civilization and of the principal legal systems of the 
world should be assured. 

Article 10 

1 . Those candidates who obtain an absolute majority of votes in 
the General Assembly and in the Security Council shall be consider- 
ed as elected. 

2. Any vote of the Security Council, whether for the election of 
judges or for the appointment of members of the conference en- 
visaged in Article 12, shall be taken without any distinction between 
permanent and non-permanent members of the Security Council. 

3. In the event of more than one national of the same state ob- 
taining an absolute majority of the votes both of the General As- 
sembly and of the Security Council, the eldest of these only shall be 
considered as elected. 

Article u 

If, after the first meeting held for the purpose of the election, one 
or more seats remain to be filled, a second and, if necessary, a third 
meeting shall take place. 

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Article 12 

1. If, after the third meeting, one or more seats still remain un- 
filled, a joint conference consisting of six members, three appointed 
by the General Assembly and three by the Security Council, may be 
formed at any time at the request of either the General Assembly 
or the Security Council, for the purpose of choosing by the vote of an 
absolute majority one name for each seat still vacant, to submit to 
the General Assembly and the Security Council for their respective 
acceptance. 

2. If the joint conference is unanimously agreed upon any person 
who fulfils the required conditions, he may be included in its list, 
even though he was not included in the list of nominations referred 
to in Article 7. 

3. If the joint conference is satisfied that it will not be successful 
in procuring an election, those members of the Court who have 
already been elected shall, within a period to be fixed by the Se- 
curity Council, proceed to fill the vacant seats by selection from 
among those candidates who have obtained votes either in the 
General Assembly or in the Security Council. 

4. In the event of an equality of votes among the judges, the eldest 
judge shall have a casting vote. 

Article 13 

1 . The members of the Court shall be elected for nine years and 
may be re-elected; provided, however, that of the judges elected at 
the first election, the terms of five judges shall expire at the end of 
three years and the terms of five more judges shall expire at the end 
of six years. 

2. The judges whose terms are to expire at the end of the above- 
mentioned initial periods of three and six years shall be chosen by 
lot to be drawn by the Secretary-General immediately after the 
first election has been completed. 

3. The members of the Court shall continue to discharge their 
duties until their places have been filled. Though replaced, they shall 
finish any cases which they may have begun. 

4. In the case of the resignation of a member of the Court, the 
resignation shall be addressed to the President of the Court for trans- 
mission to the Secretary-General. This last notification makes the 
place vacant. 

Article 14 

Vacancies shall be filled by the same method as that laid down for 
the first election, subject to the following provision: The Secretary- 
General shall, within one month of the occurrence of the vacancy, 

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proceed to issue the invitations provided for in Article 5, and the 
date of the election shall be fixed by the Security Council. 

Article 75 

A member of the Court elected to replace a member whose term 
of office has not expired shall hold office for the remainder of his 
predecessor's term. 

Article 16 

1. No member of the Court may exercise any political or adminis- 
trative function, or engage in any other occupation of a professional 
nature. 

2. Any doubt on this point shall be settled by the decision of the 
Court. 

Article ij 

1. No member of the Court may act as agent, counsel or advocate 
in any case. 

2. No member may participate in the decision of any case in which 
he has previously taken part as agent, counsel, or advocate for one of 
the parties, or as a member of a national or international court, or of 
a commission of inquiry, or in any other capacity. 

3. Any doubt on this point shall be settled by the decision of the 
Court. 

Article 18 

1. No member of the Court can be dismissed unless, in the 
unanimous opinion of the other members, he has ceased to fulfil the 
required conditions. 

2. Formal notification thereof shall be made to the Secretary- 
General by the Registrar. 

3. This notification makes the place vacant. 

Article 79 

The members of the Court, when engaged on the business of the 
Court, shall enjoy diplomatic privileges and immunities. 

Article 20 

Every member of the Court shall, before taking up his duties, 
make a solemn declaration in open court that he will exercise his 
powers impartially and conscientiously. 

Article 21 

i . The Court shall elect its President and Vice-President for three 
years; they may be re-elected. 

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2. The Court shall appoint its Registrar and may provide for the 
appointment of such other officers as may be necessary. 

Article 22 

1. The seat of the Court shall be established at The Hague. This, 
however, shall not prevent the Court from sitting and exercising its 
functions elsewhere whenever the Court considers it desirable. 

2. The President and the Registrar shall reside at the seat of the 
Court. 

Article 23 

1 . The Court shall remain permanently in session, except during 
the judicial vacations, the dates and durations of which shall be 
fixed by the Court. 

2. Members of the Court are entitled to periodic leave, the dates 
and duration of which shall be fixed by the Court, having in mind the 
distance between The Hague and the home of each judge. 

3. Members of the Court shall be bound, unless they are on leave 
or prevented from attending by illness or other serious reasons duly 
explained to the President, to hold themselves permanently at the 
disposal of the Court. 

Article 24 

1 . If, for some special reason, a member of the Court considers 
that he should not take part in the decision of a particular case, he 
shall so inform the President. 

2. If the President considers that for some special reason one of the 
members of the Court should not sit in a particular case, he shall give 
him notice accordingly. 

3. If in any such case the member of the Court and the President 
disagree, the matter shall be settled by the decision of the Court. 

Article 25 

1. The full Court shall sit except when it is expressly provided 
otherwise in the present Statute. 

2. Subject to the condition that the number of judges available to 
constitute the Court is not thereby reduced below eleven, the Rules 
of the Court may provide for allowing one or more judges, according 
to circumstances and in rotation, to be dispensed from sitting. 

3. A quorum of nine judges shall suffice to constitute the Court. 

Article 26 

i . The Court may from time to time form one or more chambers, 
composed of three or more judges as the Court may determine, for 

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dealing with particular categories of cases; for example, labour cases 
and cases relating to transit and communications. 

2. The Court may at any time form a chamber for dealing with a 
particular case. The number of judges to constitute such a chamber 
shall be determined by the Court with the approval of the parties. 

3. Cases shall be heard and determined by the chambers provided 
for in this Article if the parties so request. 

Article 27 

A judgment given by any of the chambers provided for in Ar- 
ticles 26 and 29 shall be considered as rendered by the Court. 

Article 28 

The chambers provided for in Articles 26 and 29 may, with the 
consent of the parties, sit and exercise their functions elsewhere than 
at The Hague. 

Article 29 

With a view to the speedy dispatch of business, the Court shall 
form annually a chamber composed of five judges which, at the re- 
quest of the parties, may hear and determine cases by summary 
procedure. In addition, two judges shall be selected for the purpose 
of replacing judges who find it impossible to sit. 

Article 30 

1. The Court shall frame rules for carrying out its functions. In 
particular, it shall lay down rules of procedure. 

2. The Rules of the Court may provide for assessors to sit with the 
Court or with any of its chambers, without the right to vote. 

Article 31 

1. Judges of the nationality of each of the parties shall retain their 
right to sit in the case before the Court. 

2. If the Court includes upon the Bench a judge of the nationality 
of one of the parties, any other party may choose a person to sit as 
judge. Such person shall be chosen preferably from among those 
persons who have been nominated as candidates as provided in 
Articles 4 and 5. 

3. If the Court includes upon the Bench no judge of the nationality 
of the parties, each of these parties may proceed to choose a judge as 
provided in paragraph 2 of this Article. 

4. The provisions of this Article shall apply to the case of Articles 
26 and 29. In such cases, the President shall request one or, if neces- 
sary, two of the members of the Court forming the chamber to give 

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place to the members of the Court of the nationality of the parties 
concerned, and, failing such or if they are unable to be present, to 
the judges specially chosen by the parties. 

5. Should there be several parties in the same interest, they shall, 
for the purpose of the preceding provisions, be reckoned as one party 
only. Any doubt upon this point shall be settled by the decision of 
the Court. 

6. Judges chosen as laid down in paragraphs 2, 3 and 4 of this 
Article shall fulfil the conditions required by Articles 2, 17 (para- 
graph 2), 20 and 24 of the present Statute. They shall take part in 
the decision on terms of complete equality with their colleagues. 

Article 32 

1 . Each member of the Court shall receive an annual salary. 

2. The President shall receive a special annual allowance. 

3. The Vice-President shall receive a special allowance for every 
day on which he acts as President. 

4. The judges chosen under Article 31, other than members of the 
Court, shall receive compensation for each day on which they 
exercise their functions. 

5. These salaries, allowance, and compensation shall be fixed by 
the General Assembly. They may not be decreased during the term 
of office. 

6. The salary of the Registrar shall be fixed by the General As- 
sembly on the proposal of the Court. 

7. Regulations made by the General Assembly shall fix the con- 
ditions under which retirement pensions may be given to members of 
the Court and to the Registrar, and the conditions under which 
members of the Court and the Registrar shall have their travelling 
expenses refunded. 

8. The above salaries, allowances, and compensation shall be free 
of all taxation. 

Article 33 

The expenses of the Court shall be borne by the United Nations 
in such a manner as shall be decided by the General Assembly. 

CHAPTER II 

COMPETENCE OF THE COURT 

Article 34 

1. Only states may be parties in cases before the Court. 

2. The Court, subject to and in conformity with its Rules, may 
request of public international organizations information relevant 

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to cases before it, and shall receive such information presented by 
such organizations on their own initiative. 

3. Whenever the construction of the constituent instrument of a 
public international organization or of an international convention 
adopted thereunder is in question in a case before the Court, the 
Registrar shall so notify the public international organization con- 
cerned and shall communicate to it copies of all the written pro- 
ceedings. 

Article 35 

1. The Court shall be open to the states parties to the present 
Statute. 

2. The conditions under which the Court shall be open to other 
states shall, subject to the special provisions contained in treaties in 
force, be laid down by the Security Council, but in no case shall such 
conditions place the parties in a position of inequality before the 
Court. 

3. When a state which is not a Member of the United Nations is a 
party to a case, the Court shall fix the amount which that party is to 
contribute toward the expenses of the Court. This provision shall not 
apply if such state is bearing a share of the expenses of the Court. 

Article 36 

1. The jurisdiction of the Court comprises all cases which the 
parties refer to it and all matters specially provided for in the 
Charter of the United Nations or in treaties and conventions in force. 

2. The states parties to the present Statute may at any time declare 
that they recognize as compulsory ipso facto and without special 
agreement, in relation to any other state accepting the same obliga- 
tion, the jurisdiction of the Court in all legal disputes concerning: 

(a) The interpretation of a treaty; 

(b) Any question of international law; 

(c) The existence of any fact which, if established, would con- 
stitute a breach of an international obligation; 

(d) The nature or extent of the reparation to be made for the 
breach of an international obligation. 

3. The declarations referred to above may be made uncondition- 
ally or on condition of reciprocity on the part of several or certain 
states, or for a certain time. 

4. Such declarations shall be deposited with the Secretary- 
General of the United Nations, who shall transmit copies thereof to 
the parties to the Statute and to the Registrar of the Court. 

5. Declarations made under Article 36 of the Statute of the Per- 
manent Court of International Justice and which are still in force 

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shall be deemed, as between the parties to the present Statute, to be 
acceptances of the compulsory jurisdiction of the International 
Court of Justice for the period which they still have to run and in 
accordance with their terms. 

6. In the event of a dispute as to whether the Court has juris- 
diction, the matter shall be settled by the decision of the Court. 

Article 37 

Whenever a treaty or convention in force provides for reference of 
a matter to a tribunal to have been instituted by the League of 
Nations, or to the Permanent Court of International Justice, the 
matter shall, as between the parties to the present Statute, be re- 
ferred to the International Court of Justice. 

Article 38 

1. The Court, whose function is to decide in accordance with 
international law such disputes as are submitted to it, shall apply: 

(a) International conventions, whether general or particular, 
establishing rules expressly recognized by the contesting 
states; 

(b) International custom, as evidence of a general practice ac- 
cepted as law; 

(c) The general principles of law recognized by civilized nations; 

(d) Subject to the provisions of Article 59, judicial decisions and 
the teachings of the most highly qualified publicists of the 
various nations, as subsidiary means for the determination of 
rules of law. 

2. This provision shall not prejudice the power of the Court to 
decide a case ex aequo et bono, if the parties agree thereto. 

CHAPTER III 

PROCEDURE 

Article 39 

1 . The official languages of the Court shall be French and Eng- 
lish. If the parties agree that the case shall be conducted in French, 
the judgment shall be delivered in French. If the parties agree that 
the case shall be conducted in English, the judgment shall be de- 
livered in English. 

2. In the absence of an agreement as to which language shall be 
employed, each party may, in the pleadings, use the language which 
it prefers; the decision of the Court shall be given in French and 
English. In this case the Court shall at the same time determine which 
of the two texts shall be considered as authoritative. 



SAN FRANCISCO CONFERENCE 

3. The Court shall, at the request of any party, authorize a lan- 
guage other than French or English to be used by that party. 

Article 40 

1 . Cases are brought before the Court, as the case may be, either 
by the notification of the special agreement or by a written applica- 
tion addressed to the Registrar. In either case the subject of the dis- 
pute and the parties shall be indicated. 

2. The Registrar shall forthwith communicate the application to 
all concerned. 

3. He shall also notify the Members of the United Nations through 
the Secretary-General, and also any other states entitled to appear 
before the Court. 

Article 41 

1. The Court shall have the power to indicate, if it considers that 
circumstances so require, any provisional measures which ought to 
be taken to preserve the respective rights of either party. 

2. Pending the final decision, notice of the measures suggested 
shall forthwith be given to the parties and to the Security Council. 

Article 42 

1. The parties shall be represented by agents. 

2. They may have the assistance of counsel or advocates before the 
Court. 

3. The agents, counsel, and advocates of parties before the Court 
shall enjoy the privileges and immunities necessary to the inde- 
pendent exercise of their duties. 

Article 43 

1. The procedure shall consist of two parts: written and oral. 

2. The written proceedings shall consist of the communication to 
the Court and to the parties of memorials, counter-memorials and, 
if necessary, replies; also all papers and documents in support. 

3. These communications shall be made through the Registrar, in 
the order and within the time fixed by the Court. 

4. A certified copy of every document produced by one party shall 
be communicated to the other party. 

5. The oral proceedings shall consist of the hearing by the court of 
witnesses, experts, agents, counsel, and advocates. 

Article 44 

i. For the service of all notices upon persons other than the 
agents, counsel, and advocates, the Court shall apply direct to the 

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government of the state upon whose territory the notice has to be 
served. 

2. The same provision shall apply whenever steps are to be taken 
to procure evidence on the spot. 

Article 45 

The hearing shall be under the control of the President or, if he is 
unable to preside, of the Vice-President; if neither is able to preside, 
the senior judge present shall preside. 

Article 46 

The hearing in Court shall be public, unless the Court shall de- 
cide otherwise, or unless the parties demand that the public be not 
admitted. 

Article 47 

1. Minutes shall be made at each hearing, and signed by the 
Registrar and the President. 

2. These minutes alone shall be authentic. 

Article 48 

The Court shall make orders for the conduct of the case, shall de- 
cide the form and time in which each party must conclude its argu- 
ments, and make all arrangements connected with the taking of 
evidence. 

Article 49 

The Court may, even before the hearing begins, call upon the 
agents to produce any document or to supply any explanations. 
Formal note shall be taken of any refusal. 

Article 50 

The Court may, at any time, entrust any individual, body, 
bureau, commission, or other organization that it may select, with 
the task of carrying out an inquiry or giving an expert opinion. 

Article 57 

During the hearing any relevant questions are to be put to the 
witnesses and experts under the conditions laid down by the Court in 
the rules of procedure referred to in Article 30. 

Article 52 

After the Court has received the proofs and evidence within the 
time specified for the purpose, it may refuse to accept any further 
oral or written evidence that one party may desire to present unless 
the other side consents. 

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Article 53 

1 . Whenever one of the parties does not appear before the Court, 
or fails to defend his case, the other party may call upon the Court 
to decide in favour of its claim. 

2. The Court must, before doing so, satisfy itself, not only that it 
has jurisdiction in accordance with Articles 36 and 37 but also that 
the claim is well founded in fact and law. 

Article 54 

1 . When, subject to the control of the Court, the agents, counsel, 
and advocates have completed their presentation of the case, the 
President shall declare the hearing closed. 

2. The Court shall withdraw to consider the judgment. 

3. The deliberations of the Court shall take place in private and 
remain secret. 

Article 55 

1. All questions shall be decided by a majority of the judges 
present. 

2. In the event of an equality of votes, the President or the judge 
who acts in his place shall have a casting vote. 

Article 56 

1 . The judgment shall state the reasons on which it is based. 

2. It shall contain the names of the judges who have taken part in 
the decision. 

Article 57 

If the judgment does not represent in whole or in part the 
unanimous opinion of the judges, any judge shall be entitled to 
deliver a separate opinion. 

Article 58 

The judgment shall be signed by the President and by the 
Registrar. It shall be read in open court, due notice having been 
given to the agents. 

Article 59 

The decision of the Court has no binding force except between the 
parties and in respect of that particular case. 

Article 60 

The judgment is final and without appeal. In the event of dispute 
as to the meaning or scope of the judgment, the Court shall con- 
strue it upon the request of any party. 

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Article 61 

1. An application for revision of a judgment may be made only 
when it is based upon the discovery of some fact of such a nature as to 
be a decisive factor, which fact was, when the judgment was given, 
unknown to the Court and also to the party claiming revision, always 
provided that such ignorance was not due to negligence. 

2. The proceedings for revision shall be opened by a judgment of 
the Court expressly recording the existence of the new fact, recog- 
nizing that it has such a character as to lay the case open to revision, 
and declaring the application admissible on this ground. 

3. The Court may require previous compliance with the terms of 
the judgment before it admits proceedings in revision. 

4. The application for revision must be made at latest within six 
months of the discovery of the new fact. 

5. No application for revision may be made after the lapse often 
years from the date of the judgment. 

Article 62 

1. Should a state consider that it has an interest of a legal nature 
which may be affected by the decision in the case, it may submit a 
request to the Court to be permitted to intervene. 

2. It shall be for the Court to decide upon this request. 

Article 63 

1. Whenever the construction of a convention to which states other 
than those concerned in the case are parties is in question, the 
Registrar shall notify all such states forthwith. 

2. Every state so notified has the right to intervene in the pro- 
ceedings; but if it uses this right, the construction given by the 
judgment will be equally binding upon it. 

Article 64. 

Unless otherwise decided by the Court, each party shall bear its 
own costs. 

CHAPTER IV 

ADVISORY OPINIONS 

Article 65 

1 . The Court may give an advisory opinion on any legal question 
at the request of whatever body may be authorized by or in accor- 
dance with the Charter of the United Nations to make such a request. 

2. Questions upon which the advisory opinion of the Court is 
asked shall be laid before the Court by means of a written request 

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containing an exact statement of the question upon which an 
opinion is required, and accompanied by all documents likely to 
throw light upon the question. 

Article 66 

1. The Registrar shall forthwith give notice of the request for an 
advisory opinion to all states entitled to appear before the Court. 

2. The Registrar shall also, by means of a special and direct com- 
munication, notify any state entitled to appear before the Court or 
international organization considered by the Court or, should it not 
be sitting, by the President as likely to be able to furnish information 
on the question, that the Court will be prepared to receive, within a 
time limit to be fixed by the President, written statements, or to hear, 
at a public sitting to be held for the purpose, oral statements relating 
to the question. 

3. Should any such state entitled to appear before the Court have 
failed to receive the special communication referred to in paragraph 
2 of this Article, such state miiy express a desire to submit a written 
statement or to be heard; and the Court will decide. 

4. States and organizations having presented written or oral 
statements or both shall be permitted to comment on the statements 
made by other states or organizations in the form, to the extent, and 
within the time limits which the Court, or, should it not be sitting, 
the President, shall decide in each particular case. Accordingly, the 
Registrar shall in due time communicate any such written statements 
to states and organizations having submitted similar statements. 

Article 67 

The Court shall deliver its advisory opinions in open court, notice 
having been given to the Secretary-General and to the representa- 
tives of Members of the United Nations, of other states and of inter- 
national organizations immediately concerned. 

Article 68 

In the exercise of its advisory functions the Court shall further be 
guided by the provisions of the present Statute which apply in con- 
tentious cases to the extent to which it recognizes them to be appli- 
cable. 

CHAPTER V 

AMENDMENT 

Article 69 

Amendments to the present Statute shall be effected by the same 
procedure as is provided by the Charter of the United Nations for 

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SAN FRANCISCO CONFERENCE 

amendments to that Charter, subject, however, to any provisions 
which the General Assembly upon recommendation of the Security 
Council may adopt concerning the participation of states which are 
parties to the present Statute but are not Members of the United 
Nations. 

Article jo 

The Court shall have power to propose such amendments to the 
present Statute as it may deem necessary, through written com- 
munications to the Secretary-General, for consideration in confor- 
mity with the provisions of Article 69. 

AGREEMENT ESTABLISHING THE PREPARATORY COMMISSION OF THE 
UNITED NATIONS 

The Governments represented at the United Nations Conference 
on International Organization in the City of San Francisco, having 
determined that an international organization to be known as the 
United Nations shall be established, having this day signed the Char- 
ter of the United Nations, and having decided that, pending the 
coming into force of the Charter and the establishment of the United 
Nations as provided in the Charter, a Preparatory Commission of 
the United Nations should be established for the performance of 
certain functions and duties, 

Agree as follows: 

1. There is hereby established a Preparatory Commission of the 
United Nations for the purpose of making provisional arrangements 
for the first sessions of the General Assembly, the Security Council, 
and the Economic and Social Council, and the Trusteeship Council, 
for the establishment of the Secretariat, and for the convening of the 
International Court of Justice. 

2. The Commission shall consist of one representative from each 
Government signatory to the Charter. The Commission shall estab- 
lish its own rules of procedure. The functions and powers of the Com- 
mission, when the Commission is not in session, shall be exercised by 
an executive committee composed of the representatives of those 
Governments now represented on the Executive Committee of the 
Conference. The Executive Committee shall appoint such commit- 
tees as may be necessary to facilitate its work, and shall make use of 
persons of special knowledge and experience. 

3. The Commission shall be assisted by an Executive Secretary, 
who shall exercise such powers and perform such duties as the Com- 
mission may determine, and by such stafTas may be required. This 
stall shall be composed so far as possible of officials appointed for this 



SAN FRANCISCO CONFERENCE 

purpose by the participating Governments on the invitation of the 
Executive Secretary. 

4. The Commission shall: 

(A) Convoke the General Assembly in its first session; 

(B) Prepare the provisional agenda for the first sessions of the 
principal organs of the Organization, and prepare docu- 
ments and recommendations relating to all matters on these 
agenda; 

(C) Formulate recommendations concerning the possible transfer 
of certain functions, activities, and assets of the League of 
Nations which it may be considered desirable for the new 
Organization to take over on terms to be arranged; 

(Z)) Examine the problems involved in the establishment of the 
relationship between specialized inter-governmental organiza- 
tions and agencies and the Organization; 

(E) Issue invitations for the nomination of candidates for the 
International Court of Justice in accordance with the pro- 
visions of the Statute of the Court; 

(F) Prepare recommendations concerning arrangements for the 
Secretariat of the Organization; and 

(G) Make studies and prepare recommendations concerning the 
location of the permanent headquarters of the Organization. 

5. The expenses incurred by the Commission and the expenses 
incidental to the convening of the first meeting of the General As- 
sembly shall be met by the Government of the United Kingdom of 
Great Britain arid Northern Ireland or, if the Commission so re- 
quests, shared by other governments. All such advances from govern- 
ments shall be deductible from their first contributions to the 
Organization. 

6. The seat of the Commission shall be located in London. The 
Commission shall hold its first meeting in San Francisco immediately 
after the conclusion of the United Nations Conference on Inter- 
national Organization. The Executive Committee shall call the 
Commission into session again as soon as possible after the Charter of 
the Organization comes into effect and whenever subsequently it 
considers such a session desirable. 

7. The Commission shall cease to exist upon the election of the 
Secretary-General of the Organization, at which time its property 
and records shall be transferred to the Organization. 

8. The Government of the United States of America shall be the 
temporary depository and shall have the custody of the original 
document embodying these interim arrangements in the five 
languages in which it is signed. Duly certified copies thereof shall be 

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SAN FRANCISCO CONFERENCE 

transmitted to the governments of the signatory states. The Govern- 
ment of the United States of America shall transfer the original to 
the Executive Secretary on his appointment. 

9. This document shall be effective as from this date, and shall 
remain open for signature by the states entitled to be the original 
Members of the United Nations until the Commission is dissolved in 
accordance with paragraph 7. 

In faith whereof, the undersigned representatives having been 
duly authorized for that purpose, sign this document in the English, 
French, Chinese, Russian and Spanish languages, all texts being of 
equal authenticity. 

Done in the City of San Francisco, this twenty-sixth day of June, 
Nineteen-Forty-Five. 



THE BERLIN CONFERENCE* 

TEXT OF THE REPORT 

On July 17, 1945, the President of the United States of America, 
Harry S. Truman, the Chairman of the Council of People's Com- 
missars of the Union of Soviet Socialist Republics, Generalissimo 
J. V. Stalin, and the Prime Minister of Great Britain, Winston S. 
Churchill, together with Mr Clement R. Attlee, met in the tripartite 
conference of Berlin. They were accompanied by the Foreign 
Secretaries of the three Governments, Mr James F. Byrnes, Mr 
V. M. Molotov, and Mr Anthony Eden, the Chiefs of Staff, and 
other advisers. 

There were nine meetings between July 17 and July 25. The 
conference was then interrupted for two days while the results of the 
British General Election were being declared. On July 28 Mr Attlee 
returned to the conference as Prime Minister, accompanied by the 
new Secretary of State for Foreign Affairs, Mr Ernest Bevin. Four 
days of further discussion then took place. During the course of the 
conference there were regular meetings of the heads of the three 
Governments accompanied by the Foreign Secretaries, and also of 
the Foreign Secretaries alone. Committees appointed by the 
Foreign Secretaries for preliminary consideration of questions be- 
fore the conference also met daily. The meetings of the conference 
were held at the Cecilienhof, near Potsdam. The conference ended 
on August 2, 1945. 

Important decisions and agreements were reached. Views were 
exchanged on a number of other questions, and consideration of 

1 R.I.I. A. Chronology of International Events and Documents, Vol. I, No. 3. 
n 193 



BERLIN CONFERENCE 

these matters will be continued by the Council of Foreign Ministers 
established by the conference. 

President Truman, Generalissimo Stalin, and Prime Minister 
Attlee leave this conference, which has strengthened the ties be- 
tween the three Governments and extended the scope of their 
collaboration and understanding, with renewed confidence that 
their Governments and peoples, together with the other United 
Nations, will ensure the creation of a just and enduring peace. 

A COUNCIL OF FOREIGN MINISTERS 

The conference reached an agreement for the establishment of a 
Council of Foreign Ministers, representing the five principal Powers, 
to continue the necessary preparatory work for the peace settle- 
ments and to take up other matters which from time to time may be 
referred to the Council by agreement of the Governments participat- 
ing in the Council. The text of the agreement for the establishment 
of the Council of Foreign Ministers is as follows: 

1 . There shall be established a Council composed of the Foreign 
Ministers of the United Kingdom, the Union of Soviet Socialist 
Republics, China, France, and the United States. 

2. (i) The Council shall normally meet in London, which shall be 
the permanent scat of the joint secretariat which the Council will 
form. Each of the Foreign Ministers will be accompanied by a high- 
ranking deputy, duly authorized to carry on the work of the Council 
in the absence of his Foreign Minister, and by a small staff of tech- 
nical advisers, (ii) The first meeting of the Council shall be held in 
London not later than September i, 1945. Meetings may be held by 
common agreement in other capitals as may be agreed from time to 
time. 

3. (i) As its immediate important task, the Council shall be 
authorized to draw up, with a view to their submission to the 
United Nations, treaties of peace with Italy, Rumania, Bulgaria, 
Hungary, and Finland, and to propose settlements of territorial 
questions outstanding on the termination of the war in Europe. The 
Council shall be utilized for the preparation of a peace settlement 
for Germany, to be accepted by the Government of Germany when 
a government adequate for the purpose is established, (ii) For the 
discharge of each of these tasks the Council will be composed of the 
members representing those States which were signatory to the 
terms of surrender imposed upon the enemy State concerned. For 
the purpose of the peace settlement for Italy, France shall be re- 
garded as a signatory to the terms of surrender for Italy. Other 
members will be invited to participate when matters directly con- 
cerning them are under discussion, (iii) Other matters may from time 

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BERLIN CONFERENCE 

to time be referred to the Council by agreement between the mem- 
ber Governments. 

4. (i) Whenever the Council is considering a question of direct 
interest to a State not represented thereon, such State should be 
invited to send representatives to participate in the discussion and 
study of that question, (ii) The Council may adapt its procedure to 
the particular problem under consideration. In some cases it may 
hold its own preliminary discussions prior to the participation of 
other interested States. In other cases the Council may convoke a 
formal conference of the States chiefly interested in seeking a solu- 
tion of the particular problem. 

In accordance with the decision of the conference, the three 
Governments have each addressed an identical invitation to the 
Governments of China and France to adopt this text and to join in 
establishing the Council. The establishment of the Council of Foreign 
Ministers for the specific purposes named in the text will be without 
prejudice to the agreement of the Crimea conference that there 
should be periodic consultation among the Foreign Secretaries of 
the United States, the Union of Soviet Socialist Republics, and the 
United Kingdom. 

The conference also considered the position of the European 
Advisory Commission in the light of the agreement to establish the 
Council of Foreign Ministers. It was noted with satisfaction that the 
Commission had ably discharged its principal tasks by the recom- 
mendations that it had furnished for the terms of Germany's un- 
conditional surrender, for the zones of occupation in Germany and 
Austria, and for the inter-allied control machinery in those coun- 
tries. It was felt that further work of a detailed character for the 
co-ordination of allied policy for the control of Germany and 
Austria would in future fall within the competence of the Allied 
Control Council at Berlin and the Allied Commission at Vienna. 
Accordingly, it was agreed to recommend that the European 
Advisory Commission be dissolved. 

THE ALLIES AND GERMANY 

The allied armies are in occupation of the whole of Germany and 
the German people have begun to atone for the terrible crimes com- 
mitted under the leadership of those whom, in the hour of their 
success, they openly approved and blindly obeyed. Agreement has 
been reached at this conference on the political and economic 
principles of a co-ordinated allied policy toward defeated Germany 
during the period of allied control. The purpose of this agreement 
is to carry out the Crimea declaration on Germany. German 
militarism and Nazism will be extirpated and the allies will take 

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BERLIN CONFERENCE 

in agreement together, now and in the future, the other measures 
necessary to assure that Germany never again will threaten her 
neighbours or the peace of the world. 

It is not the intention of the allies to destroy or enslave the Ger- 
man people. It is the intention of the allies that the German people 
be given the opportunity to prepare for the eventual reconstruction 
of their life on a democratic and peaceful basis. If their own efforts 
are steadily directed to this end it will be possible for them in due 
course to take their place among the free and peaceful peoples of the 
world. The text of the agreement is as follows: 

THE POLITICAL AND ECONOMIC PRINCIPLES TO GOVERN THE TREATMENT 
OF GERMANY IN THE INITIAL CONTROL PERIOD 

Political Principles 

1. In accordance with the agreement on control machinery in 
Germany, supreme authority in Germany is exercised, on instruc- 
tions from their respective Governments, by the commaiiders-in- 
chief of the armed forces of the United States of America, the United 
Kingdom, the Union of Soviet Socialist Republics, and the French 
Republic, each in his own zone of occupation, and also jointly, in 
matters affecting Germany as a whole, in their capacity as members 
of the Control Council. 

2. So far as is practicable, there shall be uniformity of treatment 
of the German population throughout Germany. 

3. The purposes of the occupation of Germany by which the 
Control Council shall be guided are: 

(i) The complete disarmament and demilitarization of Germany 
and the elimination or control of all German industry that 
could be used for military production. To these ends: (a) All 
German land, naval, and air forces, the S.S., S.A., S.D., and 
Gestapo, with all their organizations, staffs and institutions, 
including the General Staff, the Officers' Corps, Reserve 
Corps, military schools, war veterans' organizations, and all 
other military and quasi-military organizations, together 
with all clubs and associations which serve to keep alive the 
military tradition in Germany, shall be completely and 
finally abolished in such manner as permanently to prevent 
the revival or reorganization of German militarism and 
Nazism; (b) all arms, ammunition, and implements of war, 
and all specialized facilities for their production, shall be 
held at the disposal of the allies or destroyed. The mainten- 
ance and production of all aircraft and all arms, ammuni- 
tion, and implements of war shall be prevented. 

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BERLIN CONFERENCE 

(ii) To convince the German people that they have suffered a 
total military defeat and that they cannot escape respon- 
sibility for what they have brought upon themselves, since 
their own ruthless warfare and the fanatical Nazi resistance 
have destroyed German economy and made chaos and 
suffering inevitable. 

(iii) To destroy the National Socialist Party and its affiliated and 
supervised organizations; to dissolve all Nazi institutions; to 
ensure that they are not revived in any form; and to prevent 
all Nazi and militarist activity or propaganda. 

(iv) To prepare for the eventual reconstruction of German 
political life on a democratic basis and for eventual peaceful 
co-operation in international life by Germany. 

4. All Nazi laws which provided the basis of the Hitler regime or 
established discrimination on grounds of race, creed, or political 
opinion shall be abolished. No such discriminations, whether legal, 
administrative, or otherwise, shall be tolerated. 

5. War criminals and those who have participated in planning or 
carrying out Nazi enterprises involving or resulting in atrocities or 
war crimes shall be arrested and brought to judgment. Nazi 
leaders, influential Nazi supporters, and high officials of Nazi or- 
ganizations and institutions, and any other persons dangerous to 
the occupation or its objectives shall be arrested and interned. 

6. All members of the Nazi party who have been more than 
nominal participants in its activities, and all other persons hostile to 
allied purposes shall be removed from public and semi-public 
office and from positions of responsibility in important private 
undertakings. Such persons shall be replaced by persons w r ho, by 
their political and moral qualities, are deemed capable of assisting 
in developing genuine democratic institutions in Germany. 

7. German education shall be so controlled as completely to 
eliminate Nazi and militarist doctrines and to make possible the 
successful development of democratic ideas. 

8. The judicial system will be reorganized in accordance with the 
principles of democracy, of justice under law, and of equal rights for 
all citizens without distinction of race, nationality, or religion. 

9. The administration of affairs in Germany should be directed 
towards the decentralization of the political structure and the de- 
velopment of local responsibility. To this end (i) local self-govern- 
ment shall be restored throughout Germany on democratic prin- 
ciples, and in particular through elective councils, as rapidly as is 
consistent with military security and the purposes of military occu- 
pation; (ii) all democratic political parties with rights of assembly 
and of public discussion shall be allowed and encouraged throughout 

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BERLIN CONFERENCE 

Germany; (iii) representative and elective principles shall be intro- 
duced into regional, provincial and State (Land] administration as 
rapidly as may be justified by the successful application of these 
principles in local self-government; (iv) for the time being no central 
German government shall be established. Notwithstanding this, 
however, certain essential central German administrative depart- 
ments, headed by State Secretaries, shall be established, particularly 
in the fields of finance, transport, communications, foreign trade, 
and industry. Such departments will act under the direction of the 
Control Council. 

10. Subject to the necessity for maintaining military security, free- 
dom of speech, press, and religion shall be permitted, and religious 
institutions shall be respected. Subject likewise to the maintenance of 
military security, the formation of free trade unions shall be permitted. 

Economic Principles 

11. In order to eliminate Germany's war potential, the production 
of arms, ammunition, and implements of war as well as all types of 
aircraft and sea-going ships shall be prohibited and prevented. Pro- 
duction of metals, chemicals, machinery, and other items that arc 
directly necessary to a war economy shall be rigidly controlled and 
restricted to Germany's approved post-war peace-time needs to 
meet the objectives stated in paragraph 15. Productive capacity 
not needed for permitted production shall be removed in accordance 
with the reparations plan recommended by the Allied Commission 
on Reparations and approved by the Governments concerned, or if 
not removed shall be destroyed. 

12. At the earliest practicable date, the German economy shall be 
decentralized for the purpose of eliminating the present excessive 
concentration of economic power as exemplified in particular by 
cartels, syndicates, trusts, and other monopolistic arrangements. 

13. In organizing the German economy, primary emphasis shall 
be given to the development of agriculture and peaceful domestic 
industries. 

14. During the period of occupation Germany shall be treated as a 
single economic unit. To this end common policies shall be estab- 
lished in regard to: (a) mining and industrial production and 
allocation; (b) agriculture, forestry, and fishing; (c) wages, prices, 
and rationing; (d] import and export programmes for Germany as a 
whole; (e) currency and banking, central taxation, and Customs; 
(/) reparation and removal of industrial war potential; (g) trans- 
portation and communications. In applying these policies account 
shall be taken, where appropriate, of varying local conditions. 

15. Allied controls shall be imposed upon the German economy, 

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but only to the extent necessary (a) to carry out programmes of in- 
dustrial disarmament and demilitarization, of reparations, and of 
approved exports and imports; (b) to assure the production and 
maintenance of goods and services required to meet the needs of the 
occupying forces and displaced persons in Germany, and essential to 
maintain in Germany average living standards not exceeding the 
average of the standards of living of European countries (European 
countries means all European countries excluding the United King- 
dom and the Union of Soviet Socialist Republics) ; (c) to ensure in 
the manner determined by the Control Council the equitable dis- 
tribution of essential commodities between the several zones, so as to 
produce a balanced economy throughout Germany and reduce the 
need for imports; (d) to control German industry and all economic and 
financial international transactions, including exports and imports, 
with the aim of preventing Germany from developing a war potential 
and of achieving the other objectives named herein; (e) to control all 
German public or private scientific bodies, research and experimental 
institutions, laboratories, etc., connected with economic activities. 

1 6. In the imposition and maintenance of economic controls 
established by the Control Council, German administrative machin- 
ery shall be created and the German authorities shall be required to 
the fullest extent practicable to proclaim and assume administration 
of such controls. Thus it should be brought home to the German 
people that the responsibility for the administration of such controls, 
and any breakdown in these controls, will rest with themselves. Any 
German controls which may run counter to the objectives of occupa- 
tion will be prohibited. 

17. Measures shall be promptly taken (a) to effect essential repair 
of transport; (b) to enlarge coal production; (c) to maximize agri- 
cultural output; (d) to effect emergency repair of housing and es- 
sential utilities. 

1 8. Appropriate steps shall be taken by the Control Council to 
exercise control and the power of disposition over German-owned 
external assets not already under the control of the United Nations 
which have taken part in the war against Germany. 

19. Payment of reparations should leave enough resources to 
enable the German people to subsist without external assistance. In 
working out the economic balance of Germany the necessary means 
must be provided to pay for imports approved by the Control 
Council in Germany. The proceeds of exports from current pro- 
duction and stocks shall be available in the first place for payment 
for such imports. The above clause will not apply to the equipment 
and products referred to in paragraph 4 (a) and 4 (b) of the repara- 
tions agreement. 

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GERMAN REPARATIONS 

In accordance with the Crimea decision that Germany be com- 
pelled to compensate to the greatest possible extent for the loss and 
suffering that she has caused to the United Nations and for which 
the German people cannot escape responsibility, the following 
agreement on reparations was reached: 

1. Reparation claims of the U.S.S.R. shall be met by removals 
from the zone of Germany occupied by the U.S.S.R. and from ap- 
propriate German external assets. 

2. The U.S.S.R. undertakes to settle the reparation claims of 
Poland from its own share of reparations. 

3. The reparation claims of the United States, the United King- 
dom, and other countries entitled to reparations shall be met from 
the Western zones and from appropriate German external assets. 

4. In addition to the reparations to be taken by the U.S.S.R. from 
its own zone of occupation, the U.S.S.R. shall receive additionally 
from the Western Zones: (a) 15 per cent of such usable and complete 
industrial capital equipment, in the first place from the metallurgical, 
chemical, and machine manufacturing industries, as is unnecessary 
for the German peace economy, and should be removed from the 
Western zones of Germany, in exchange for an equivalent value of 
food, coal, potash, zinc, timber, clay products, petroleum products, 
and such other commodities as may be agreed upon, (b) 10 per cent 
of such industrial capital equipment as is unnecessary for the Ger- 
man peace economy and should be removed from the western zones, 
to be transferred to the Soviet Government on reparations account 
without payment or exchange of any kind in return. Removals of 
equipment as provided in (a) and (b) above shall be made simul- 
taneously. 

5. The amount of equipment to be removed from the Western 
zones on account of reparations must be determined within six 
months from now at the latest. 

6. Removals of industrial capital equipment shall begin as soon as 
possible and shall be completed within two years from the deter- 
mination specified in paragraph 5. The delivery of products covered 
by 4 (a) above shall begin as soon as possible, and shall be made by 
the U.S.S.R. in agreed instalments within five years of the date 
thereof. The determination of the amount and character of the in- 
dustrial capital equipment unnecessary for the German peace 
economy and therefore available for reparation shall be made by the 
Control Council under policies fixed by the Allied Commission on 
Reparations, with the participation of France, subject to the final 
approval of the zone commander in the zone from which the equip- 
ment is to be removed. 

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7. Prior to the fixing of the total amount of equipment subject to 
removal, advance deliveries shall be made in respect of such equip- 
ment as will be determined to be eligible for delivery in accordance 
with the procedure set forth in the last sentence of paragraph 6. 

8. The Soviet Government renounces all claims in respect of 
reparations to shares of German enterprises which are located in the 
Western zones of occupation in Germany, as well as to German 
foreign assets in all countries except those specified in paragraph 9 
below. 

9. The Governments of the U.K. and U.S.A. renounce their 
claims in respect of reparations to shares of German enterprises 
which are located in the Eastern zone of occupation in Germany, as 
well as to German foreign assets in Bulgaria, Finland, Hungary, 
Rumania, and eastern Austria. 

10. The Soviet Government makes no claims to gold captured by 
the allied troops in Germany. 

DISPOSAL OF THE FLEET 

The conference agreed in principle upon arrangements for the use 
and disposal of the surrendered German fleet and merchant ships. 
It was decided that the three Governments would appoint experts to 
work out together detailed plans to give effect to the agreed prin- 
ciples. A further joint statement will be published simultaneously by 
the three Governments in due course. 

CITY OF KONIGSBERG AND THE ADJACENT AREA 

The conference examined a proposal by the Soviet Government 
that, pending the final determination of territorial questions at the 
peace settlement, the section of the western frontier of the Union of 
Soviet Socialist Republics which is adjacent to the Baltic Sea should 
pass from a point on the eastern shore of the Bay of Danzig to the 
east, north of Braunsberg-Goldap, to the meeting point of the fron- 
tiers of Lithuania, the Polish Republic, and East Prussia. 

The conference has agreed in principle to the proposal of the 
Soviet Government concerning the ultimate transfer to the Soviet 
Union of the city of Konigsberg and the area adjacent to it as 
described above, subject to expert examination of the actual frontier. 

The President of the United States and the British Prime Minister 
have declared that they will support the proposal of the conference at 
the forthcoming peace settlement. 

WAR CRIMINALS 

The three Governments have taken note of the discussions which 
have been proceeding in recent weeks in London between British, 

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BERLIN CONFERENCE 

United States, Soviet, and French representatives with a view to 
reaching agreement on the methods of trial of those major war 
criminals whose crimes under the Moscow declaration of October, 
1943, have no particular geographical localization. The three 
Governments reaffirm their intention to bring these criminals to 
swift and sure justice. They hope that the negotiations in London 
will result in speedy agreement being reached for this purpose, and 
they regard it as a matter of great importance that the trial of these 
major criminals should begin at the earliest possible date. The first 
list of defendants will be published before September i . 



The conference examined a proposal by the Soviet Government 
on the extension of the authority of the Austrian Provisional Govern- 
ment to all of Austria. The three Governments agreed that they 
were prepared to examine this question after the entry of the British 
and American forces into the city of Vienna. 

POLAND 

The conference considered questions relating to the Polish Pro- 
visional Government and the western boundary of Poland. 

A. On the Polish Provisional Government of National Unity, they 
defined their attitude in the following statement: 

We have taken note with pleasure of the agreement reached 
among representative Poles from Poland and abroad which has made 
possible the formation, in accordance with the decisions reached at 
the Crimea conference, of a Polish Provisional Government of 
National Unity recognized by the three Powers. The establishment 
by the British and United States Governments of diplomatic re- 
lations with the Polish Provisional Government has resulted in the 
withdrawal of their recognition from the former Polish Government 
in London, which no longer exists. 

The British and United States Governments have taken measures 
to protect the interest of the Polish Provisional Government as the 
recognized Government of the Polish State in the property belonging 
to the Polish State located in their territories and under their con- 
trol, whatever the form of this property may be. They have further 
taken measures to prevent alienation to third parties of such pro- 
perty. All proper facilities will be given to the Polish Provisional 
Government for the exercise of the ordinary legal remedies for the 
recovery of any property belonging to the Polish State which may 
have been wrongfully alienated. 

The three Powers are anxious to assist the Polish Provisional 

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Government in facilitating the return to Poland as soon as prac- 
ticable of all Poles abroad who wish to go, including members of the 
Polish armed forces and the merchant marine. They expect that 
those Poles who return home shall be accorded personal and pro- 
perty rights on the same basis as all Polish citizens. 

The three Powers note that the Polish Provisional Government, in 
accordance with the decisions of the Crimea conference, has agreed 
to the holding of free and unfettered elections as soon as possible on 
the basis of universal suffrage and secret ballot, in which all demo- 
cratic and anti-Nazi parties shall have the right to take part and to 
put forward candidates, and that representatives of the allied press 
shall enjoy full freedom to report to the world upon developments in 
Poland before and during the elections. 

B. The following agreement was reached on the western frontier 
of Poland : 

In conformity with the agreement on Poland reached at the 
Crimea conference, the three heads of Government have sought the 
opinion of the Polish Provisional Government of National Unity in 
regard to the accession of territory in the north and west which 
Poland should receive. The President of the National Council of 
Poland and members of the Polish Provisional Government of 
National Unity have been received at the conference and have fully 
presented their views. The three heads of Government reaffirm their 
opinion that the final delimitation of the western frontier of Poland 
should await the peace settlement. 

The three heads of Government agree that, pending the final 
determination of Poland's western frontier, the former German 
territories east of a line running from the Baltic Sea immediately 
west of Swincmundc, and thence along the Oder River to the con- 
fluence of the western Neisse River and along the western Neisse to 
the Czechoslovak frontier, including that portion of East Prussia not 
placed under the administration of the Union of Soviet Socialist 
Republics in accordance with the understanding reached at this 
conference and including the area of the former free city of Danzig, 
shall be under the administration of the Polish State and for such 
purposes should not be considered as part of the Soviet zone of oc- 
cupation in Germany. 

CONCLUSION OF PEACE TREATIES AND ADMISSION TO UNITED 
NATIONS ORGANIZATION 

The conference agreed upon the following statement of common 
policy for establishing as soon as possible the conditions of lasting 
peace after victory in Europe: 

203 



BERLIN CONFERENCE 

The three Governments consider it desirable that the present 
anomalous position of Italy, Bulgaria, Finland, Hungary, and 
Rumania should be terminated by the conclusion of peace treaties. 
They trust that the other interested allied Governments will share 
these views. For their part, the three Governments have included 
the preparation of a peace treaty for Italy as the first among the 
immediate important tasks to be undertaken by the new Council of 
Foreign Ministers. Italy was the first of the Axis Powers to break 
with Germany, to whose defeat she has made a material contribu- 
tion, and has now joined with the allies in the struggle against 
Japan. Italy has freed herself from the Fascist regime and is making 
good progress towards the re-establishment of a democratic govern- 
ment and institutions. The conclusion of such a peace treaty with a 
recognized and democratic Italian Government will make it pos- 
sible for the three Governments to fulfil their desire to support an 
application from Italy for membership of the United Nations. 

The three Governments have also charged the Council of Foreign 
Ministers with the task of preparing peace treaties for Bulgaria, 
Finland, Hungary, and Rumania. The conclusion of peace treaties 
with recognized democratic Governments in these States will also 
enable the three Governments to support applications from them 
for membership of the United Nations. The three Governments 
agree to examine each separately in the near future, in the light of the 
conditions then prevailing, the establishment of diplomatic relations 
with Finland, Rumania, Bulgaria, and Hungary to the extent 
possible prior to the conclusion of peace treaties with those countries. 

The three Governments have no doubt that in view of the changed 
conditions resulting from the termination of the war in Europe, 
representatives of the allied press will enjoy full freedom to report to 
the world upon developments in Rumania, Bulgaria, Hungary, and 
Finland. 

As regards the admission of other States into the United Nations 
Organization, Article 4 of the Charter of the United Nations de- 
clares that: "i. Membership in the United Nations is open to all 
other peace-loving States who accept the obligations contained in 
the present Charter and, in the judgment of the Organization, are 
able and willing to carry out those obligations. 2. The admission of 
any such State to membership in the United Nations will be effec- 
tive by a decision of the General Assembly upon the recommenda- 
tion of the Security Council." The three Governments, so far as they 
are concerned, will support applications for membership from those 
States which have remained neutral during the war and which fulfil 
the qualifications set out above. 

The three Governments feel bound, however, to make it clear 

204 



BERLIN CONFERENCE 

that they for their part would not favour any application for member- 
ship put forward by the present Spanish Government, which, having 
been founded with the support of the Axis Powers, does not, in view 
of its origins, its nature, its record, and its close association with the 
aggressor States, possess the qualifications necessary to justify such 
membership. 

TERRITORIAL TRUSTEESHIP 

The conference examined a proposal by the Soviet Government 
concerning trusteeship territories as defined in the decision of the 
Crimea conference and in the Charter of the United Nations Or- 
ganization. After an exchange of views on this question it was de- 
cided that the disposition of any former Italian territories was one to 
be decided in connection with the preparation of a peace treaty with 
Italy, and that the question of Italian territory would be considered 
by the September Council of Ministers of Foreign Affairs. 

REVISED ALLIED CONTROL COMMISSION PROCEDURE IN RUMANIA, 
BULGARIA, AND HUNGARY 

The three Governments took note that the Soviet Representatives 
on the Allied Control Commissions in Rumania, Bulgaria, and 
Hungary have communicated to their United Kingdom and United 
States colleagues proposals for improving the work of the Control 
Commissions, now that hostilities in Europe have ceased. The three 
Governments agreed that the revision of the procedures of the 
Allied Control Commissions in these countries should now be under- 
taken, taking into account the interests and responsibilities of the 
three Governments which together presented the terms of armistice 
to the respective countries, and accepting as a basis the agreed pro- 
posals. 

ORDERLY TRANSFERS OF GERMAN POPULATIONS 

The conference reached the following agreement on the removal 
of Germans from Poland, Czechoslovakia, and Hungary: 

The three Governments, having considered the question in all its 
aspects, recognize that the transfer to Germany of German popula- 
tions, or elements thereof, remaining in Poland, Czechoslovakia, and 
Hungary will have to be undertaken. They agree that any transfers 
that take place should be effected in an orderly and humane manner. 

Since the influx of a large number of Germans into Germany 
would increase the burden already resting on the occupying authori- 
ties, they consider that the Allied Control Council in Germany 
should in the first instance examine the problem with special regard 
to the question of the equitable distribution of these Germans among 
the several zones of occupation. They are accordingly instructing 
their respective representatives on the Control Council to report to 

205 



BERLIN CONFERENCE 

their Governments as soon as possible the extent to which such per- 
sons have already entered Germany from Poland, Czechoslovakia, 
and Hungary, and to submit an estimate of the time and rate at 
which further transfers could be carried out, having regard to the 
present situation in Germany. 

The Czechoslovak Government, the Polish Provisional Govern- 
ment, and the Control Council in Hungary are at the same time 
being informed of the above, and are being requested meanwhile to 
suspend further expulsions pending the examination by the Govern- 
ments concerned of the report from their representatives on the 
Control Council. 

MILITARY TALKS 

During the conference there were meetings between the Chiefs of 
Staff of the three Governments on military matters of common 
interest. 

Approved: (Signed) J. V. STALIN, HARRY S. TRUMAN, C. R. 
ATTLEE. 

PROCLAMATION TO THE JAPANESE PEOPLE 

On July 26 a proclamation to the Japanese people was issued from 
Potsdam by President Truman, Marshal Stalin, Mr Churchill, and 
General Chiang Kai-shek. It began by warning them that pro- 
digious forces were now poised to strike the final blows on Japan, 
which would result in the complete destruction of the Japanese armed 
forces and the utter devastation of the homeland. It then went on: 

"4. The time has come for Japan to decide whether she will con- 
tinue to be controlled by those self-willed militaristic advisers whose 
unintelligent calculations have brought the Empire of Japan to the 
threshold of annihilation, or whether she will follow the path of reason. 

"5. The following are our terms: We will not deviate from them. 
There are no alternatives. We shall brook no delay: 

"6. There must be eliminated for all time the authority and in- 
fluence of those who have deceived and misled the people of Japan 
into embarking on world conquest, for we insist that a new order of 
peace, security, and justice will be impossible until irresponsible 
militarism is driven from the world. 

"7. Until such a new order is established and until there is con- 
vincing proof that Japan's war-making power is destroyed, points in 
Japanese territory designated by the allies shall be occupied to secure 
the achievements of the basic objectives we are here setting forth. 

"8. The terms of the Cairo declaration shall be carried out and 
Japanese sovereignty shall be limited to the islands of Honshu, Hok- 
kaido, Kyushu, Shikoku, and such minor islands as we determine. 

206 



BERLIN CONFERENCE 

"9. The Japanese military forces after being completely disarmed 
shall be permitted to return to their homes with the opportunity of 
leading peaceful and productive lives. 

"10. We do not intend that the Japanese shall be enslaved as a 
race nor destroyed as a nation, but stern justice will be meted out to 
all war criminals, including those who have visited cruelties upon 
our prisoners. The Japanese Government shall remove all obstacles 
to the revival and strengthening of democratic tendencies among the 
Japanese people. Freedom of speech, of religion, and of thought as 
well as respect for fundamental human rights shall be established. 

"u. Japan shall be permitted to maintain such industries as will 
sustain her economy and allow the exaction of just reparations in 
kind, but not those industries which will enable her to re-arm for 
war. To this end access to, as distinguished from control of, raw 
materials shall be permitted. Eventual Japanese participation in 
world trade relations shall be permitted. 

"12. The occupying forces of the allies shall be withdrawn from 
Japan as soon as these objectives have been accomplished and there 
has been established, in accordance with the freely expressed will of 
the Japanese people, a peacefully inclined and responsible govern- 
ment. 

"13. We call upon the Government of Japan to proclaim now the 
unconditional surrender of all the Japanese armed forces and to 
provide proper and adequate assurances of their good faith in such 
action. The alternative for Japan is complete and utter destruction.'* 



FOOD AND AGRICULTURE ORGANIZATION 

Conference in Quebec, November, 1945 

I. CONSTITUTION OF THE FOOD AND AGRICULTURE 
ORGANIZATION OF THE UNITED NATIONS 1 

[As a result of the United Nations Conference on Food and Agriculture 
held at Hot Springs, Virginia, U.S.A. in May 19^:3, an Interim Com- 
mission was established which formulated the constitution reproduced below.] 

Preamble 

The Nations accepting this Constitution, being determined to 
promote the common welfare by furthering separate and collective 
action on their part for the purposes of 

1 Cmd. 6590. Documents Relating to the Food and Agriculture Organization of the United 
Nations, August i December 14, 1944. 

207 



FOOD AND AGRICULTURE ORGANIZATION 

raising levels of nutrition and standards of living of the peoples 

under their respective jurisdictions, 
securing improvements in the efficiency of the production and 

distribution of all food and agricultural products, 
bettering the condition of rural populations, 
and thus contributing towards an expanding world economy, 

hereby establish the Food and Agriculture Organization of the 
United Nations, hereinafter referred to as the "Organization", 
through which the Members will report to one another on the 
measures taken and the progress achieved in the fields of action set 
forth above. 

Article I 

FUNCTIONS OF THE ORGANIZATION 

1. The Organization shall collect, analyse, interpret, and dis- 
seminate information relating to nutrition, food and agriculture. 

2. The Organization shall promote and, where appropriate, shall 
recommend national and international action with respect to 

(fl) scientific, technological, social, and economic research relating 
to nutrition, food and agriculture; 

(b) the improvement of education and administration relating to 
nutrition, food and agriculture, and the spread of public 
knowledge of nutritional and agricultural science and practice; 

(c) the conservation of natural resources and the adoption of im- 
proved methods of agricultural production; 

(d) the improvement of the processing, marketing, and distribu- 
tion of food and agricultural products; 

(e) the adoption of policies for the provision of adequate agricul- 
tural credit, national and international; 

(/) the adoption of international policies with respect to agri- 
cultural commodity arrangements. 

3. It shall also be the function of the Organization 

(a) to furnish such technical assistance as governments may re- 
quest; 

(b) to organize, in co-operation with the governments concerned, 
such missions as may be needed to assist them to fulfil the 
obligations arising from their acceptance of the recommenda- 
tions of the United Nations Conference on Food and Agricul- 
ture; and 

(c) generally to take all necessary and appropriate action to im- 
plement the purposes of the Organization as set forth in the 
Preamble. 

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POOD AND AGRICULTURE ORGANIZATION 

Article II 

MEMBERSHIP 

1. The original Members of the Organization shall be such of the 
nations specified in Annex I as accept this Constitution in accordance 
with the provisions of Article XXI. 

2. Additional Members may be admitted to the Organization by a 
vote concurred in by a two-thirds majority of all the members of the 
Conference and upon acceptance of this Constitution as in force at 
the time of admission. 

Article III 

THE CONFERENCE 

1 . There shall be a Conference of the Organization in which each 
Member nation shall be represented by one member. 

2. Each Member nation may appoint an alternate, associates, and 
advisers to its member of the Conference. The Conference may make 
rules concerning the participation of alternates, associates, and ad- 
visers in its proceedings, but any such participation shall be without 
the right to vote except in the case of an alternate or associate par- 
ticipating in the place of a member. 

3. No member of the Conference may represent more than one 
Member nation. 

4. Each Member nation shall have only one vote. 

5. The Conference may invite any public international organiza- 
tion which has responsibilities related to those of the Organization 
to appoint a representative who shall participate in its meetings on 
the conditions prescribed by the Conference. No such representative 
shall have the right to vote. 

6. The Conference shall meet at least once in every year. 

7. The Conference shall elect its own officers, regulate its own pro- 
cedure, and make rules governing the convocation of sessions and 
the determination of agenda. 

8. Except as otherwise expressly provided in this Constitution or 
by rules made by the Conference, all matters shall be decided by the 
Conference by a simple majority of the votes cast. 

Article IV 

FUNCTIONS OF THE CONFERENCE 

1. The Conference shall determine the policy and approve the 
budget of the Organization and shall exercise the other powers con- 
ferred upon it by this Constitution. 

2. The Conference may by a two-thirds majority of the votes cast 
make recommendations concerning questions relating to food and 

o 209 



FOOD AND AGRICULTURE ORGANIZATION 

agriculture to be submitted to Member nations for consideration 
with a view to implementation by national action. 

3. The Conference may by a two-thirds majority of the votes cast 
submit conventions concerning questions relating to food and agri- 
culture to Member nations for consideration with a view to their 
acceptance by the appropriate constitutional procedure. 

4. The Conference shall make rules laying down the procedure to 
be followed to secure 

(a) proper consultation with governments and adequate tech- 
nical preparation prior to consideration by the Conference of 
proposed recommendations and conventions; and 

(6) proper consultation with governments in regard to relations 
between the Organization and national institutions or private 
persons. 

5. The Conference may make recommendations to any public 
international organization regarding any matter pertaining to the 
purpose of the Organization. 

6. The Conference may by a two-thirds majority of the votes cast 
agree to discharge any other functions consistent with the purposes 
of the Organization which may be assigned to it by governments or 
provided for by any arrangement between the Organization and 
any other public international organization. 

Article V 

THE EXECUTIVE COMMITTEE 

1. The Conference shall appoint an Executive Committee con- 
sisting of not less than nine or more than fifteen members or alternate 
or associate members of the Conference or their advisers who are 
qualified by administrative experience or other special qualifica- 
tions to contribute to the attainment of the purpose of the Organiza- 
tion. There shall be not more than one member from any Member 
nation. The tenure and other conditions of office of the members of 
the Executive Committee shall be subject to rules to be made by the 
Conference. 

2. Subject to the provisions of paragraph I of this Article, the 
Conference shall have regard in appointing the Executive Commit- 
tee to the desirability that its membership should reflect as varied as 
possible an experience of different types of economy in relation to 
food and agriculture. 

3. The Conference may delegate to the Executive Committee such 
powers as it may determine, with the exception of the powers set 
forth in paragraph 2 of Article II, Article IV, paragraph i of Article 
VII, Article XIII, and Article XX of this Constitution. 

210 



FOOD AND AGRICULTURE ORGANIZATION 

4. The members of the Executive Committee shall exercise the 
powers delegated to them by the Conference on behalf of the whole 
Conference and not as representatives of their respective govern- 
ments. 

5. The Executive Committee shall appoint its own officers and, 
subject to any decisions of the Conference, shall regulate its own 
procedure. 

Article VI 

OTHER COMMITTEES AND CONFERENCES 

1 . The Conference may establish technical and regional standing 
committees and may appoint committees to study and report on any 
matter pertaining to the purpose of the Organization. 

2. The Conference may convene general, technical, regional, or 
other special conferences and may provide for the representation at 
such conferences, in such manner as it may determine, of national 
and international bodies concerned with nutrition, food and 
agriculture. 

Article VII 

THE DIRECTOR-GENERAL 

1. There shall be a Director-General of the Organization who shall 
be appointed by the Conference by such procedure and on such 
terms as it may determine. 

2. Subject to the general supervision of the Conference and its 
Executive Committee, the Director-General shall have full power 
and authority to direct the work of the Organization. 

3. The Director-General or a representative designated by him 
shall participate, without the right to vote, in all meetings of the 
Conference and of its Executive Committee and shall formulate for 
consideration by the Conference and the Executive Committee 
proposals for appropriate action in regard to matters coming before 
them. 

Article VIII 

STAFF 

1 . The staff of the Organization shall be appointed by the Direc- 
tor-General in accordance with such procedure as may be deter- 
mined by rules made by the Conference. 

2. The staff of the Organization shall be responsible to the Direc- 
tor-General. Their responsibilities shall be exclusively international 
in character and they shall not seek or receive instructions in regard 
to the discharge thereof from any authority external to the Organiza- 
tion. The Member nations undertake fully to respect the internation- 
al character of the responsibilities of the staff and not to seek to 

211 



FOOD AND AGRICULTURE ORGANIZATION 

influence any of their nationals in the discharge of such respon- 
sibilities. 

3. In appointing the staff the Director-General shall, subject to 
the paramount importance of securing the highest standards of 
efficiency and of technical competence, pay due regard to the im- 
portance of selecting personnel recruited on as wide a geographical 
basis as is possible. 

4. Each Member nation undertakes, in so far as it may be possible 
under its constitutional procedure, to accord to the Director- 
General and senior staff diplomatic privileges and immunities and to 
accord to other members of the staff all facilities and immunities 
accorded to non-diplomatic personnel attached to diplomatic mis- 
sions, or alternatively to accord to such other members of the staff 
the immunities and facilities which may hereafter be accorded to 
equivalent members of the staffs of other public international 
organizations. 

Article IX 

SEAT 

The seat of the Organization shall be determined by the Con- 
ference. 

Article X 

REGIONAL AND LIAISON OFFICES 

1. There shall be such regional offices as the Director-General 
with the approval of the Conference may decide. 

2. The Director-General may appoint officials for liaison with 
particular countries or areas subject to the agreement of the govern- 
ment concerned. 

Article XI 

REPORTS BY MEMBERS 

1. Each Member nation shall communicate periodically to the 
Organization reports on the progress made toward achieving the 
purpose of the Organization set forth in the Preamble and on the 
action taken on the basis of recommendations made and conven- 
tions submitted by the Conference. 

2. These reports shall be made at such times and in such form and 
shall contain such particulars as the Conference may request. 

3. The Director-General shall submit these reports, together with 
analyses thereof, to the Conference and shall publish such reports 
and analyses as may be approved for publication by the Conference 
together with any reports relating thereto adopted by the Conference. 

4. The Director-General may request any Member nation to 
submit information relating to the purpose of the Organization. 

212 



FOOD AND AGRICULTURE ORGANIZATION 

5. Each Member nation shall, on request, communicate to the 
Organization, on publication, all laws and regulations and official 
reports and statistics concerning nutrition, food and agriculture. 

Article XII 

CO-OPERATION WITH OTHER ORGANIZATIONS 

1 . In order to provide for close co-operation between the Organi- 
zation and other public international organizations with related 
responsibilities, the Conference may, subject to the provision of 
Article XIII, enter into agreements with the competent authorities 
of such organizations defining the distribution of responsibilities and 
methods of co-operation. 

2. The Director-General may, subject to any decisions of the Con- 
ference, enter into agreements with other public international 
organizations for the maintenance of common services, for common 
arrangements in regard to recruitment, training, conditions of 
service, and other related matters, and for interchanges of staff. 

Article XIII 

RELATION TO ANY GENERAL WORLD ORGANIZATION 

1. The Organization shall, in accordance with the procedure 
provided for in the following paragraph, constitute a part of any 
general international organization to which may be entrusted the 
co-ordination of the activities of international organizations with 
specialized responsibilities. 

2. Arrangements for defining the relations between the Organiza- 
tion and any such general organization shall be subject to the ap- 
proval of the Conference. Notwithstanding the provisions of Article 
XX, such arrangements may, if approved by the Conference by a 
two-thirds majority of the votes cast, involve modification of the 
provisions of this Constitution: Provided that no such arrangements 
shall modify the purposes and limitations of the Organization as set 
forth in this Constitution. 

Article XIV 

SUPERVISION OF OTHER ORGANIZATIONS 

The Conference may approve arrangements placing other public 
international organizations dealing with questions relating to food 
and agriculture under the general authority of the Organization on 
such terms as may be agreed with the competent authorities of the 
organization concerned. 



213 



FOOD AND AGRICULTURE ORGANIZATION 

Article XV 

LEGAL STATUS 

1 . The Organization shall have the capacity of a legal person to 
perform any legal act appropriate to its purpose which is not beyond 
the powers granted to it by this Constitution. 

2. Each Member nation undertakes, in so far as it may be possible 
under its constitutional procedure, to accord to the Organization all 
the immunities and facilities which it accords to diplomatic missions, 
including inviolability of premises and archives, immunity from suit, 
and exemptions from taxation. 

3. The Conference shall make provision for the determination by 
an administrative tribunal of disputes relating to the conditions and 
terms of appointment of members of the staff. 

Article XVI 

FISH AND FOREST PRODUCTS 

In this Constitution the term "agriculture" and its derivatives 
include fisheries, marine products, forestry, and primary forestry 
products. 

Article XVII 

INTERPRETATION OF CONSTITUTION 

Any question or dispute concerning the interpretation of this 
Constitution or any international convention adopted thereunder 
shall be referred for determination to an appropriate international 
court or arbitral tribunal in the mariner prescribed by rules to be 
adopted by the Conference. 

Article XVIII 

EXPENSES 

1. Subject to the provisions of Article XXV, the Director-General 
shall submit to the Conference an annual budget covering the an- 
ticipated expenses of the Organization. Upon approval of a budget 
the total amount approved shall be allocated among the Member 
nations in proportions determined, from time to time, by the Con- 
ference. Each Member nation undertakes, subject to the require- 
ments of its constitutional procedure, to contribute to the Organiza- 
tion promptly its share of the expenses so determined. 

2. Each Member nation shall, upon its acceptance of this Con- 
stitution, pay as its first contribution its proportion of the annual 
budget for the current financial year. 

214 



FOOD AND AGRICULTURE ORGANIZATION 

3. The financial year of the Organization shall be July i to June 30 
unless the Conference should otherwise determine. 



Article XIX 

WITHDRAWAL 

Any Member nation may give notice of withdrawal from the 
Organization at any time after the expiration of four years from the 
date of its acceptance of this Constitution. Such notice shall take 
effect one year after the date of its communication to the Director- 
General of the Organization subject to the Member nation's having 
at that time paid its annual contribution for each year of its mem- 
bership, including the financial year following the date of such 
notice. 

Article XX 

AMENDMENT OF CONSTITUTION 

1 . Amendments to this Constitution involving new obligations for 
Member nations shall require the approval of the Conference by a 
vote concurred in by a two-thirds majority of all the members of the 
Conference and shall take effect on acceptance by two-thirds of the 
Member nations for each Member nation accepting the amendment 
and thereafter for each remaining Member nation on acceptance 
by it. 

2. Other amendments shall take effect on adoption by the Con- 
ference by a vote concurred in by a two-thirds majority of all the 
members of the Conference. 

Article XXI 

ENTRY INTO FORGE OF CONSTITUTION 

1. This Constitution shall be open to acceptance by the nations 
specified in Annex I. 

2. The instruments of acceptance shall be transmitted by each 
government to the United Nations Interim Commission on Food 
and Agriculture, which shall notify their receipt to the governments 
of the nations specified in Annex I. Acceptance may be notified to 
the Interim Commission through a diplomatic representative, in 
which case the instrument of acceptance must be transmitted to the 
Commission as soon as possible thereafter. 

3. Upon the receipt by the Interim Commission of twenty noti- 
fications of acceptance the Interim Commission shall arrange for this 
Constitution to be signed in a single copy by the diplomatic repre- 
sentatives, duly authorized thereto, of the nations who shall have 
notified their acceptance, and upon being so signed on behalf of not 

215 



FOOD AND AGRICULTURE ORGANIZATION 

less than twenty of the nations specified in Annex I this Constitution 
shall come into force immediately. 

4. Acceptances the notification of which is received after the entry 
into force of this Constitution shall become effective upon receipt by 
the Interim Commission or the Organization. 

Article XXII 

FIRST SESSION OF THE CONFERENCE 

The United Nations Interim Commission on Food and Agricul- 
ture shall convene the first session of the Conference to meet at a 
suitable date after the entry into force of this Constitution. 

Article XXIII 

LANGUAGES 

Pending the adoption by the Conference of any rules regarding 
languages, the business of the Conference shall be transacted in 
English. 

Article XXIV 

TEMPORARY SEAT 

The temporary seat of the Organization shall be at Washington 
unless the Conference should otherwise determine. 

Article XXV 

FIRST FINANCIAL YEAR 

The following exceptional arrangements shall apply in respect of 
the financial year in which this Constitution comes into force: 

(a) the budget shall be the provisional budget set forth in Annex 
II to this Constitution; and 

(b) the amounts to be contributed by the Member nations shall be 
in the proportions set forth in Annex II to this Constitution: 
Provided that each Member nation may deduct therefrom the 
amount already contributed by it toward the expenses of the 
Interim Commission. 

Article XXVI 

DISSOLUTION OF THE INTERIM COMMISSION 

On the opening of the first session of the Conference, the United 
Nations Interim Commission on Food and Agriculture shall be 
deemed to be dissolved and its records and other property shall 
become the property of the Organization. 

216 



FOOD AND AGRICULTURE ORGANIZATION 

ANNEX I 
NATIONS ELIGIBLE FOR ORIGINAL MEMBERSHIP 

Australia Ethiopia Nicaragua 

Belgium France Norway 

Bolivia Greece Panama 

Brazil Guatemala Paraguay 

Canada Haiti Peru 

Chile Honduras Philippine Commonwealth 

China Iceland Poland 

Colombia India Union of South Africa 

Costa Rica Iran Union of Soviet Socialist 

Cuba Iraq Republics 

Czechoslovakia Liberia United Kingdom 

Denmark Luxembourg United States of America 

Dominican Republic Mexico Uruguay 

Ecuador Netherlands Venezuela 

Egypt New Zealand Yugoslavia 

El Salvador 

II. RESOLUTIONS 1 

The Conference resolves: 

1. That, in pursuance of Article XIII of the Constitution of the 
Food and Agriculture Organization (which provides that the Or- 
ganization shall constitute a part of any general international 
organization to which may be entrusted the co-ordination of the 
activities of international organizations with specialized respon- 
sibilities) and in accordance with Article 57 of the Charter of the 
United Nations (which provides that the specialized agencies shall 
be brought into relation with the United Nations), the Organization 
shall without prejudice to its purposes and limitations as set out in 
the Constitution, so order its procedure and practice as to achieve 
the closest relationship with the United Nations and the other 
specialized agencies established in connection therewith. 

2. That, in order to give effect to the provision of paragraph i, 
the Director-General shall, with the approval of the Executive 
Committee, negotiate agreements between the Organization and 
the United Nations and other specialized agencies established in 
connection therewith. 

3. That, as provided by Article XII of the Constitution, the 
Organization shall take the fullest advantage of any common ser- 
vices made available to the specialized agencies by the United 
Nations. 

4. That the Director-General, with the approval of the Executive 
Committee, 

1 United Nations Preparatory Commission, PC/ES/4. 

217 



FOOD AND AGRICULTURE ORGANIZATION 

(a) shall examine the question of the relationship between the 
Organization and other inter-governmental organizations 
having related responsibilities; 

(b) shall, in view of the fact that the closest possible co-operation 
is needed with non-governmental international organizations 
which may be of assistance to the Organization in achieving 
its fundamental objectives, and particularly the improvement 
of the standard of living of all workers, consider the methods 
by which such co-operation may best be established; and 

(c) shall report thereon to the next session of the Conference. 

III. RECOMMENDATION CONCERNING COMMON ADMINISTRATIVE 
SERVICES FOR SPECIALIZED AGENCIES 

The Conference recommends: 

1 . That in order to achieve the most efficient utilization of the 
services of staff available to or employed by the Food and Agri- 
culture Organization arid other specialized agencies of the United 
Nations, the Organization comply, subject to the reservation in 
Article XIII, paragraph 2, of the Constitution, with the recom- 
mendations by the United Nations Organization made under 
Article 58 of the Charter or otherwise, 

(a) which provide for common conditions and terms of service, 
for the interchange of staff with other specialized agencies, 
and for the establishment of an Administrative Tribunal for 
the decision of disputes between the specialized agencies and 
their staffs; or 

(b) which in any other way secure that the staff of the specialized 
agencies shall be available to serve the interests of the United 
Nations in whatever way they are best able as members of an 
international administrative service. 

2. That toward this end any persons employed by the Organiza- 
tion be employed on terms compatible with any such recommenda- 
tions, or, in the case of persons engaged before the coming into force 
of arrangements made under Article 63 of the Charter and Article 
XIII of the Constitution for defining the relations between the Food 
and Agriculture Organization and the United Nations Organization, 
the contract of employment include a provision that its terms shall 
be varied as may be necessary to accord with the provisions of the 
said arrangements. 



218 



FOOD AND AGRICULTURE ORGANIZATION 

IV. RECOMMENDATION CONCERNING FINANCIAL RELATIONS 
WITH THE UNITED NATIONS 

The Conference recommends: 

1. That the Director-General should, subject to the approval of 
the Conference, under Article XIII, paragraph 2, of the Constitu- 
tion, include in any agreement made under Article 63 of the Charter 
of the United Nations provisions which empower the United Nations 
to carry out on behalf of FAO those financial services which are the 
more effective if carried out in common by the United Nations on 
behalf of the specialized agencies. In particular, the Director - 
General should agree to the inclusion of provisions for the collection 
of contributions and the performance of external audit services by 
}he United Nations. 

2. That the Director-General should, subject to the approval of 
the Conference under Article XIII, paragraph 2, of the Con- 
stitution, include in any agreement made under Article 63 of the 
Charter of the United Nations provisions (a) for the exercise of 
advisory functions with regard to the budget of the Food and 
Agriculture Organization by the General Assembly of the United 
Nations, and (b) for the inclusion of the budget of FAO within the 
budget of the United Nations. 

V. RECOMMENDATION CONCERNING THE 
INTERNATIONAL INSTITUTE OF AGRICULTURE 

The Conference, 

recognizing the undesirability of duplication of work of international 

organizations in the same fields, recommends: 

1 . That those Governments which are members both of the Food 
and Agriculture Organization of the United Nations (hereinafter 
called "the Organization") and of the International Institute of 
Agriculture at Rome (hereinafter called "the Institute") acting 
through the Permanent Committee of the Institute, call a session of 
the General Assembly as soon as possible, but not later than June 30, 
1946. 

2. That the Permanent Committee of the Institute be requested to 
prepare a scheme to be approved by a majority of votes in the 
General Assembly, as follows: 

(a) A Protocol shall be concluded and signed by signatory and 
adhering governments to the Convention of Rome of June 7, 
1905, by which the affairs of the Institute, including its Annex, 
the Centre International de Sylviculture, shall be wound up, 
as from a date to be determined by the Protocol. 
219 



FOOD AND AGRICULTURE ORGANIZATION 

(b) The Permanent Committee shall be empowered by the Proto- 
col and shall be instructed accordingly by the General As- 
sembly (i) to wind up the affairs of the Institute, and (ii) to 
transfer the library, archives, and property of the Institute to 
the Organization, which will decide their location. 

(c) The Protocol shall further provide that, in the execution of the 
provisions of the international conventions which attribute 
functions to the Institute, the Organization shall be substituted 
for the Institute, and governments which are not signatories 
of or do not accede to the Protocol, shall be notified thereof, 
and shall be invited to co-operate in the execution of this 
proposal. 

3. That the United Nations require in peace treaties with enemy 
countries now under occupation that those countries carry out the 
provisions of the Protocol. 

VI. RECOMMENDATION CONCERNING COMITE 

INTERNATIONAL DU Bois 
The Conference, 

being desirous of avoiding overlapping and duplication of effort 
among international organizations, recommends: 

1 . That those Governments which are members both of the Food 
and Agriculture Organization of the United Nations (hereafter 
called "the Organization") and of the Comite International du 
Bois (hereafter called "the C.I.B.") call a session of the Permanent 
Committee of the C.I.B. as soon as possible, but not later than June 
30, 1946, with a view to making the necessary arrangements under 
Article IX of the Statute of the C.I.B. for: 

(a) the winding up of the affairs of the C.I.B.; and 

(b) the transfer of the library, archives, and property of the 
C.I.B. to the Organization, which will decide their location. 

2. That FAO carry on such of the activities of the C.I.B. as are 
consistent with the purposes of the Organization set forth in its 
Constitution. 

VII. STATEMENT ON REGIONAL OFFICES 
The Conference, 

Recognizing that regional offices of FAO will be required, and 

Recognizing further that, as far as possible, these offices should be 
established in co-operation with other regional offices of the United 
Nations or of the other specialized agencies, and should, if con- 
venient, be located in the same buildings, 

220 



FOOD AND AGRICULTURE ORGANIZATION 

1. Requests that the Director-General and the Executive Corn- 
mittee study the number and location of the regional offices to be 
established, due regard being paid in each case to the actual func- 
tions, scope and structure of such offices, and report thereon to the 
next Session of the Conference. 

2. Empowers the Director-General, pending such report to the 
Second Session of the Conference, to establish, with the approval 
of the Executive Committee, on a provisional basis, such regional 
offices of the FAO as he may deem necessary. 

VIII. RECOMMENDATION CONCERNING RULES OF PROCEDURE 
The Conference recommends: 

That consideration be given at an appropriate time to the ad- 
visability of assimilating where feasible the Rules and Regulations 
of FAO with those of other United Nations organizations. 

IX. DESIGNATION OF THE SEAT OF THE ORGANIZATION: 
PERMANENT RULES OF PROCEDURE: RULE XXXII 

i. The scat of the Organization shall be situated at the same place 
as the headquarters of the UNO. Pending a decision regarding the 
headquarters of the UNO, the headquarters of the Organization shall 
be in Washington, D.C.* 

* The following statement was adopted as a footnote to Rule 
XXXII. 

"It is assumed that the headquarters of the United Nations 
Organization will include the headquarters of the Economic 
and Social Council, that part of the United Nations Organization 
with which the Food and Agriculture Organization will be most 
closely associated. 55 



THE INTERNATIONAL LABOUR ORGANIZATION 1 

Twenty-Seventh Session, Paris, November 1945 

RESOLUTION CONCERNING THE RELATIONSHIP BETWEEN THE 
INTERNATIONAL LABOUR ORGANIZATION AND THE UNITED NATIONS 

Whereas the Charter of the United Nations proclaims the deter- 
mination of the peoples of the United Nations to "save succeeding 
generations from the scourge of war 55 , to "reaffirm faith in funda- 
mental human rights 55 and in the "dignity and worth of the human 

1 United Nations Preparatory Commission, PC/ES/4. 

221 



I.L.O. AND THE UNITED NATIONS 

person", to "establish conditions under which justice and respect for 
the obligations arising from the treaties and other sources of inter- 
national law can be maintained", to "promote social progress and 
better standards of life in larger freedom", and for these ends "to 
employ international machinery for the promotion of the economic 
and social advancement of all peoples"; and 

Whereas the Charter establishes for the attainment of these ends 
an international organization to be known as the United Nations, 
and provides that international organizations established by inter- 
governmental agreement, and having wide international respon- 
sibilities, as defined by their basic instruments, in economic, social, 
cultural, educational, health, and related fields, shall be brought 
into relationship with the United Nations; and 

Whereas the Constitution of the International Labour Organiza- 
tion affirms that universal peace can be established only if it is based 
on social justice, and declares the intention of the High Contracting 
Parties, moved by sentiments of justice and humanity as well as by 
the desire to secure the permanent peace of the world, to establish 
the International Labour Organization as a permanent organization 
for the promotion of social justice; and 

Whereas the Conference of the International Labour Organiza- 
tion, meeting at New York, on November 4, 1941, unanimously de- 
clared the victory of the free peoples in the war against totalitarian 
aggression to be an indispensable condition of the attainment of the 
ideals of the International Labour Organization; and 

Whereas the Declaration of Philadelphia, which was unanimously 
adopted by the General Conference of the International Labour 
Organization meeting in its Twenty-Sixth Session at Philadelphia 
on May 10, 1944, "recognizes the solemn obligation of the Inter- 
national Labour Organization to further among the nations of the 
world programmes which will achieve", among other ends, "full 
employment and the raising of the standards of living", and "pledges 
the full co-operation of the International Labour Organization with 
such international bodies as may be entrusted with a share of the 
responsibility" for "fuller and broader utilization of the world's 
productive resources necessary for the achievement of these ob- 
jectives" and for "the promotion of the health, education and well- 
being of all peoples"; and 

Whereas the Governing Body of the International Labour Office, 
meeting in London in its Ninety-Fourth Session, unanimously 
adopted on January 25, 1945, a statement affirming "the desire of the 
International Labour Organization for association with the general 
international organization" then contemplated; and 

Whereas this statement was conveyed by the International Labour 

222 



I.L.O. AND THE UNITED NATIONS 

Organization to the United Nations Conference on International 
Organization at San Francisco; and 

Whereas the Governing Body of the International Labour Office 
has expressed its desire that all the Members of the United Nations 
should be associated with the work of the International Labour 
Organization: 

The General Conference of the International Labour Organization: 

1. Welcomes the entry into force of the Charter of the United 
Nations and pledges the full co-operation of the International 
Labour Organization with the United Nations in pursuance of the 
objectives set forth in the Charter, the Constitution of the Inter- 
national Labour Organization and the Declaration of Philadelphia: 

2. Expresses the keen satisfaction of the International Labour 
Organization that the Charter provides that the United Nations 
shall promote: (a) higher standards of living, full employment, and 
conditions of economic and social progress and development; (b) 
solutions of international economic, social, health and related 
problems; and international cultural and educational co-operation; 
and (c) universal respect for, and observance of, human rights and 
fundamental freedoms for all without distinction as to race, sex, 
language or religion, and embodies a pledge by all Members of the 
United Nations to take joint and separate action in co-operation 
with the United Nations for the achievement of their purposes; 

3. Confirms the desire of the International Labour Organization 
to enter into relationship with the United Nations on terms, to be 
determined by agreement, which will permit the International 
Labour Organization, in which the representatives of workers and 
employers enjoy equal status with those of Governments, to co- 
operate fully for the attainment of these ends, while retaining the 
authority essential for the discharge of its responsibilities under the 
Constitution of the Organization and the Declaration of Phila- 
delphia: and 

4. Authorizes the Governing Body of the International Labour 
Office to enter, subject to the approval of the Conference, into such 
agreements with the appropriate authorities of the United Nations 
as may be necessary or desirable for this purpose. 

DESIDERATA IN REGARD TO RELATIONS BETWEEN THE INTERNATIONAL 
LABOUR ORGANIZATION AND THE UNITED NATIONS 

Extract from Report of the Constitutional Committee 

The statement conveyed by the representatives of the Internation- 
al Labour Organization to the United Nations Conference on 
International Organization at San Francisco summarizes in the 

223 



I.L.O. AND THE UNITED NATIONS 

following terms the desiderata in regard to the relationship between 
the International Labour Organization and the United Nations 
which were defined by the Governing Body in London for the guid- 
ance of the negotiating delegation in January 1945. 

"The International Labour Organization needs and desires, 
within the new framework, enough freedom of action to discharge 
its responsibilities and particularly to assure that the voice which 
the workers and employers exercise in world affairs through the 
International Labour Organization remains a real one. It goes 
without saying that the tripartite form of organization, which has 
given the International Labour Organization its special character 
and its special strength, should be maintained. The International 
Labour Organization's direct relations with Governments should 
remain unimpaired. It should have access to the General As- 
sembly and a position within the new organization which will 
enable it to make an effective contribution. The working out of 
this position may be left to the negotiations contemplated in the 
Dumbarton Oaks proposals, and we are confident that the terms 
finally agreed on will be such as to permit the necessary freedom 
within the framework of co-ordinated effort. 

The International Labour Organization has pledged its full 
co-operation with the other international organizations to be 
included within the great structure which you are building here 
and has made clear its hope and confidence that all of the United 
Nations will co-operate with it to make effective the social objec- 
tives set forth in the Declaration of Philadelphia. We realise that it 
will be necessary to alter the Constitution of the International 
Labour Organization in order to provide the necessary links with 
the United Nations, and we are also in course of examining the 
constitutional changes necessary to enable us to do our own work 
better." 

CONSTITUTIONAL AMENDMENTS ADOPTED BY THE 
INTERNATIONAL LABOUR CONFERENCE 

November, 1945 
Article 2 

2. The Members of the International Labour Organization shall 
be the States which were Members of the Organization on Novem- 
ber i, 1945, and such other States as may become Members in 
pursuance of the provisions of paragraphs 3 and 4 of this Article. 

3. Any original Member of the United Nations and any State 
admitted to membership of the United Nations by a decision of the 
General Assembly in accordance with the provisions of the Charter 
may become a member of the International Labour Organization 

224 



I.L.O. AND THE UNITED NATIONS 

by communicating to the Director of the International Labour 
Office its formal acceptance of the obligations of the Constitution of 
the International Labour Organization. 

Article 3 

i. The International Labour Organization may make such 
financial and budgetary arrangements with the United Nations 
as may appear appropriate. 



CONSTITUTION OF THE UNITED NATIONS EDUCA- 
TIONAL, SCIENTIFIC AND CULTURAL ORGANIZATION 1 

London, November 16, 1945 

The Governments of the States parties to this Constitution on 
behalf of their peoples declare, 

that since wars begin in the minds of men, it is in the minds of men 
that the defences of peace must be constructed; 
that ignorance of each other's ways and lives has been a common 
cause, throughout the history of mankind, of that suspicion and 
mistrust between the peoples of the world through which their 
differences have all too often broken into war; 

that the great and terrible war which has now ended was a war 
made possible by the denial of the democratic principles of the dig- 
nity, equality and mutual respect of men, and by the propagation, 
in their place, through ignorance and prejudice, of the doctrine of 
the inequality of men and races; 

that the wide diffusion of culture, and the education of humanity 
for justice and liberty and peace are indispensable to the dignity of 
man and constitute a sacred duty which all the nations must fulfil in 
a spirit of mutual assistance and concern; 

that a peace based exclusively upon the political and economic 
arrangements of governments would not be a peace which could 
secure the unanimous, lasting and sincere support of the peoples of 
the world, and that the peace must therefore be founded, if it is not 
to fail, upon the intellectual and moral solidarity of mankind. 

For these reasons, the States parties to this Constitution, believing 
in full and equal opportunities for education for all, in the unre- 
stricted pursuit of objective truth, and in the free exchange of ideas 
and knowledge, are agreed and determined to develop and to in- 
crease the means of communication between their peoples and to 
employ these means for the purposes of mutual understanding and a 
truer and more perfect knowledge of each other's lives; 

1 Cmd. 6711. 
P 225 



UNESCO CONSTITUTION 

In consequence whereof they do hereby create the United Nations 
Educational, Scientific and Cultural Organization for the purpose of 
advancing, through the educational and scientific and cultural re- 
lations of the peoples of the world, the objectives of international peace 
and of the common welfare of mankind for which the United Nations 
Organization was established and which its Charter proclaims. 

Article I 

PURPOSES AND FUNCTIONS 

1 . The purpose of the Organization is to contribute to peace and 
security by promoting collaboration among the nations through 
education, science and culture in order to further universal respect 
for justice, for the rule of law and for the human rights and funda- 
mental freedoms which are affirmed for the peoples of the world, 
without distinction of race, sex, language or religion, by the Charter 
of the United Nations. 

2. To realize this purpose the Organization will: 

(a) collaborate in the work of advancing the mutual knowledge 
and understanding of peoples, through all means of mass 
communication and to that end recommend such internation- 
al agreements as may be necessary to promote the free flow 
of ideas by word and image; 

(b) give fresh impulse to popular education and to the spread of 
culture; 

by collaborating with Members, at their request, in the de- 
velopment of educational activities; 

by instituting collaboration among the nations to advance the 
ideal of equality of educational opportunity without regard to 
race, sex or any distinctions, economic or social; 
by suggesting educational methods best suited to prepare the 
children of the world for the responsibilities of freedom; 

(c) maintain, increase and diffuse knowledge; 

by assuring the conservation and protection of the world's 
inheritance of books, works of art and monuments of history 
and science, and recommending to the nations concerned the 
necessary international conventions; 

by encouraging co-operation among the nations in all 
branches of intellectual activity, including the international 
exchange of persons active in the fields of education, science 
and culture and the exchange of publications, objects of artis- 
tic and scientific interest and other materials of information; 
by initiating methods of international co-operation calculated 
to give the people of all countries access to the printed and 
published materials produced by any of them. 
226 



UNESCO CONSTITUTION 

3. With a view to preserving the independence, integrity and 
fruitful diversity of the cultures and educational systems of the 
States Members of this Organization, the Organization is prohibited 
from intervening in matters which are essentially within their 
domestic jurisdiction. 

Article II 

MEMBERSHIP 

1 . Membership of the United Nations Organization shall carry 
with it the right to membership of the United Nations Educational, 
Scientific and Cultural Organization. 

2. Subject to the conditions of the agreement between this Or- 
ganization and the United Nations Organization, approved pur- 
suant to Article X of this Constitution, States not members of the 
United Nations Organization may be admitted to membership of 
the Organization, upon recommendation of the Executive Board, 
by a two-thirds majority vote of the General Conference. 

3. Members of the Organization which are suspended from the 
exercise of the rights and privileges of membership of the United 
Nations Organization shall, upon the request of the latter, be sus- 
pended from the rights and privileges of this Organization. 

4. Members of the Organization which are expelled from the 
United Nations Organization shall automatically cease to be mem- 
bers of this Organization. 

Article III 

ORGANS 

The Organization shall include a General Conference, an Execu- 
tive Board and a Secretariat. 

Article IV 

THE GENERAL CONFERENCE 

A. Composition 

1 . The General Conference shall consist of the representatives of 
the States Members of the Organization. The Government of each 
Member State shall appoint not more than five delegates, who shall 
be selected after consultation with the National Commission, if 
established, or with educational, scientific and cultural bodies. 

B. Functions 

2. The General Conference shall determine the policies and the 
main lines of work of the Organization. It shall take decisions on 
programmes drawn up by the Executive Board. 

227 



UNESCO CONSTITUTION 

3. The General Conference shall, when it deems it desirable, sum- 
mon international conferences on education, the sciences and 
humanities and the dissemination of knowledge. 

4. The General Conference shall, in adopting proposals for sub- 
mission to the Member States, distinguish between recommenda- 
tions and international conventions submitted for their approval. In 
the former case a majority vote shall suffice; in the latter case a two- 
thirds majority shall be required. Each of the Member States shall 
submit recommendations or conventions to its competent authorities 
within a period of one year from the close of the session of the 
General Conference at which they were adopted. 

5. The General Conference shall advise the United Nations Or- 
ganization on the educational, scientific and cultural aspects of 
matters of concern to the latter, in accordance with the terms and 
procedure agreed upon between the appropriate authorities of the 
two Organizations. 

6. The General Conference shall receive and consider the reports 
submitted periodically by Member States as provided by Article 
VIII. 

7. The General Conference shall elect the members of the Execu- 
tive Board and, on the recommendation of the Board, shall appoint 
the Director-General. 

C. Voting 

8. Each Member State shall have one vote in the General Con- 
ference. Decisions shall be made by a simple majority except in 
cases in which a two-thirds majority is required by the provision? of 
this Constitution. A majority shall be a majority of the Members 
present and voting. 

D. Procedure 

9. The General Conference shall meet annually in ordinary 
session; it may meet in extraordinary session on the call of the 
Executive Board. At each session the location of its next session shall 
be designated by the General Conference and shall vary from year 
to year. 

10. The General Conference shall, at each session, elect a Presi- 
dent and other officers and adopt rules of procedure. 

1 1 . The General Conference shall set up special and technical 
committees and such other subordinate bodies as may be necessary 
for its purposes. 

12. The General Conference shall cause arrangements to be made 
for public access to meetings, subject to such regulations as it shall 
prescribe. 

228 



UNESCO CONSTITUTION 

E. Observers 

13. The General Conference, on the recommendation of the 
Executive Board and by a two- thirds majority, may, subject to its 
rules of procedure, invite as observers at specified sessions of the 
Conference or of its commissions representatives of international 
organizations, such as those referred to in Article XI, paragraph 4. 

Article V 

EXECUTIVE BOARD 

A. Composition 

1 . The Executive Board shall consist of eighteen members elected 
by the General Conference from among the delegates appointed by 
the Member States, together with the President of the Conference 
who shall sit ex qfficio in an advisory capacity. 

2. In electing the members of the Executive Board the General 
Conference shall endeavour to include persons competent in the arts, 
the humanities, the sciences, education and the diffusion of ideas, 
and qualified by their experience and capacity to fulfil the adminis- 
trative and executive duties of the Board. It shall also have regard to 
the diversity of cultures and a balanced geographical distribution. 
Not more than one national of any Member State shall serve on the 
Board at any one time, the President of the Conference exccpted. 

3. The elected members of the Executive Board shall serve for a 
term of three years, and shall be immediately eligible for a second 
term, but shall not serve consecutively for more than two terms. At 
the first election eighteen members shall be elected of whom one- 
third shall retire at the end of the first year and one-third at the end 
of the second year, the order of retirement being determined im- 
mediately after the election by the drawing of lots. Thereafter six 
members shall be elected each year. 

4. In the event of the death or resignation of one of its members, 
the Executive Board shall appoint, from among the delegates of the 
Member State concerned, a substitute, who shall serve until the 
next session of the General Conference which shall elect a member 
for the remainder of the term. 

B. Functions 

5. The Executive Board, acting under the authority of the 
General Conference, shall be responsible for the execution of the 
programme adopted by the Conference and shall prepare its agenda 
and programme of work. 

6. The Executive Board shall recommend to the General Con- 
ference the admission of new Members to the Organization. 

229 



UNESCO CONSTITUTION 

7. Subject to decisions of the General Conference, the Executive 
Board shall adopt its own rules of procedure. It shall elect its officers 
from among its members. 

8. The Executive Board shall meet in regular session at least twice 
a year and may meet in special session if convoked by the Chairman 
on his own initiative or upon the request of six members of the 
Board. 

9. The Chairman of the Executive Board shall present to the 
General Conference, with or without comment, the annual report of 
the Director-General on the activities of the Organization, which 
shall have been previously submitted to the Board. 

10. The Executive Board shall make all necessary arrangements to 
consult the representatives of international organizations or quali- 
fied persons concerned with questions within its competence. 

1 1 . The members of the Executive Board shall exercise the powers 
delegated to them by the General Conference on behalf of the Con- 
ference as a whole and not as representatives of their respective 
Governments. 

Article VI 

SECRETARIAT 

1 . The Secretariat shall consist of a Director-General and such 
staff as may be required. 

2. The Director-General shall be nominated by the Executive 
Board and appointed by the General Conference for a period of six 
years, under such conditions as the Conference may approve, and 
shall be eligible for reappointment. He shall be the chief administra- 
tive officer of the Organization. 

3. The Director-General, or a deputy designated by him, shall 
participate, without the right to vote, in all meetings of the General 
Conference, of the Executive Board, and of the committees of the 
Organization. He shall formulate proposals for appropriate action 
by the Conference and the Board. 

4. The Director-General shall appoint the staff of the Secretariat 
in accordance with staff regulations to be approved by the General 
Conference. Subject to the paramount consideration of securing the 
highest standards of integrity, efficiency and technical competence, 
appointment to the staff shall be on as wide a geographical basis as 
possible. 

5. The responsibilities of the Director-General and of the staff 
shall be exclusively international in character. In the discharge of 
their duties they shall not seek or receive instructions from any 
Government or from any authority external to the Organization. 
They shall refrain from any action which might prejudice their 

230 



UNESCO CONSTITUTION 

position as international officials. Each State Member of the Or- 
ganization undertakes to respect the international character of the 
responsibilities of the Director-General and the staff, and not to seek 
to influence them in the discharge of their duties. 

6. Nothing in this Article shall preclude the Organization from 
entering into special arrangements within the United Nations Or- 
ganization for common services and staff and for the interchange of 
personnel. 

Article VII 

NATIONAL CO-OPERATING BODIES 

1. Each Member State shall make such arrangements as suit its 
particular conditions for the purpose of associating its principal 
bodies interested in educational, scientific and cultural matters with 
the woik of the Organization, preferably by the formation of a 
National Commission broadly representative of the Government and 
such bodies. 

2. National Commissions or national co-operating bodies, where 
they exist, shall act in an advisory capacity to their respective dele- 
gations to the General Conference and to their Governments in 
matters relating to the Organization and shall function as agencies 
of liaison in all matters of interest to it. 

3. The Organization may, on the request of a Member State, 
delegate, either temporarily or permanently, a member of its Sec- 
retariat to serve on the National Commission of that State, in order 
to assist in the development of its work. 

Article VIII 

REPORTS BY MEMBER STATES 

Each Member State shall report periodically to the Organization, 
in a manner to be determined by the General Conference, on its 
laws, regulations and statistics relating to educational, scientific and 
cultural life and institutions, and on the action taken upon the 
recommendations and conventions referred to in Article IV, para- 
graph 4. 

Article IX 

BUDGET 

1. The budget shall be administered by the Organization. 

2. The General Conference shall approve and give final effect to 
the budget and to the apportionment of financial responsibility 
among the States Members of the Organization subject to such 
arrangement with the United Nations as may be provided in the 
agreement to be entered into pursuant to Article X. 

231 



UNESCO CONSTITUTION 

3. The Director-General, with the approval of the Executive 
Board, may receive gifts, bequests, and subventions directly from 
Governments, public and private institutions, associations and 
private persons. 

Article X 

RELATIONS WITH THE UNITED NATIONS ORGANIZATION 

This Organization shall be brought into relation with the United 
Nations Organization, as soon as practicable, as one of the special- 
ized agencies referred to in Article 57 of the Charter of the United 
Nations. This relationship shall be effected through an agreement 
with the United Nations Organization under Article 63 of the Char- 
ter, which agreement shall be subject to the approval of the General 
Conference of this Organization. The agreement shall provide for 
effective co-operation between the two Organizations in the pursuit 
of their common purposes, and at the same time shall recognize 
the autonomy of this Organization, within the fields of its com- 
petence as defined in this Constitution. Such agreement may, 
among other matters, provide for the approval and financing of 
the budget of the Organization by the General Assembly of the 
United Nations. 

Article XI 

RELATIONS WITH OTHER SPECIALIZED INTERNATIONAL 
ORGANIZATIONS AND AGENCIES 

1 . This Organization may co-operate with other specialized inter- 
governmental organizations and agencies whose interests and activi- 
ties are related to its purposes. To this end the Director-General, 
acting under the general authority of the Executive Board, may 
establish effective working relationships with such organizations and 
agencies and establish such joint committees as may be necessary 
to assure effective co-operation. Any formal arrangements entered 
into with such organizations or agencies shall be subject to the ap- 
proval of the Executive Board. 

2. Whenever the General Conference of this Organization and 
the competent authorities of any other specialized inter-govern- 
mental organizations or agencies whose purposes and functions lie 
within the competence of this Organization, deem it desirable to 
effect a transfer of their resources and activities to this Organiza- 
tion, the Director-General, subject to the approval of the Con- 
ference, may enter into mutually acceptable arrangements for this 
purpose. 

232 



UNESCO CONSTITUTION 

3. This Organization may make appropriate arrangements with 
other inter-governmental organizations for reciprocal representa- 
tion at meetings. 

4. The United Nations Educational, Scientific and Cultural 
Organization may make suitable arrangements for consultation and 
co-operation with non-governmental international organizations 
concerned with matters within its competence, and may invite them 
to undertake specific tasks. Such co-operatiori may also include 
appropriate participation by representatives of such organizations 
on advisory committees set up by the General Conference. 

Article XII 

LEGAL STATUS OF THE ORGANIZATION 

The provisions of Articles 104 and 105 of the Charter of the United 
Nations Organization concerning the legal status of that Organiza- 
tion, its privileges and immunities shall apply in the same way to this 
Organization. 

Article XIII 

AMENDMENTS 

1. Proposals for amendments to this Constitution shall become 
effective upon receiving the approval of the General Conference by 
a two-thirds majority; provided, however, that those amendments 
which involve fundamental alterations in the aims of the Organiza- 
tion or new obligations for the Member States shall require sub- 
sequent acceptance on the part of two-thirds of the Member States 
before they come into force. The draft texts of proposed amendments 
shall be communicated by the Director-General to the Member 
States at least six months in advance of their consideration by the 
General Conference. 

2. The General Conference shall have power to adopt by a two- 
thirds majority rules of procedure for carrying out the provisions of 
this Article. 

Article XIV 

INTERPRETATION 

1 . The English and French texts of this Constitution shall be re- 
garded as equally authoritative. 

2. Any question or dispute concerning the interpretation of this 
Constitution shall be referred for determination to the International 
Court of Justice or to an arbitral tribunal, as the General Conference 
may determine under its rules of procedure. 

233 



UNESCO CONSTITUTION 



Article XV 



ENTRY INTO FORCE 

1. This Constitution shall be subject to acceptance. The instru- 
ments of acceptance shall be deposited with the Government of the 
United Kingdom. 

2. This Constitution shall remain open for signature in the archives 
of the Government of the United Kingdom. Signature may take 
place either before or after the deposit of the instrument of accep- 
tance. No acceptance shall be valid unless preceded or followed by 
signature. 

3. This Constitution shall come into force when it has been accept- 
ed by twenty of its signatories. Subsequent acceptances shall take 
effect immediately. 

4. The Government of the United Kingdom will inform all mem- 
bers of the United Nations of the receipt of all instruments of accep- 
tance and of the date on which the Constitution comes into force in 
accordance with the preceding paragraph. 

In faith whereof, the undersigned, duly authorized to that effect, 
have signed this Constitution in the English and French languages, 
both texts being equally authentic. 

Done in London the sixteenth day of November, 1945, in a single 
copy, in the English and French languages, of which certified copies 
will be communicated by the Government of the United Kingdom 
to the Governments of all the Members of the United Nations. 

The Governments of the following countries were represented at 
the Conference, at which the Constitution was adopted: 



Argentine Republic 

Australia 

Belgium 

Bolivia 

Brazil 

Canada 

Chile 

China 

Colombia 

Cuba 

Czechoslovakia 

Denmark 

Dominican Republic 

Ecuador 

El Salvador 

Egypt 



France 

Greece 

Guatemala 

Haiti 

India 

Iran 

Iraq 

Lebanon 

Liberia 

Luxembourg 

Mexico 

Netherlands, The 

New Zealand 

Nicaragua 

Norway 

Panama 

234 



Peru 

Philippines, The 

Poland 

Saudi Arabia 

Syria 

Turkey 

Union of South Africa 

United Kingdom of 
Great Britain and 
Northern Ireland 

United States of 
America 

Uruguay 

Venezuela (represent- 
ed by an Observer) 

Yugoslavia 



UNESCO CONSTITUTION 

The following international organizations were also represented 
by Observers: 

International Labour Organization 

League of Nations Secretariat 

League of Nations Committee on Intellectual Co-operation 

International Institute of Intellectual Co-operation 

Pan-American Union 

United Nations Relief and Rehabilitation Administration 

(UNRRA) 
International Bureau of Education. 



PROPOSALS FOR CONSIDERATION BY AN INTER- 
NATIONAL CONFERENCE ON TRADE AND EMPLOY- 
MENT AS TRANSMITTED BY THE SECRETARY OF 
STATE OF THE UNITED STATES OF AMERICA TO HIS 
MAJESTY'S AMBASSADOR AT WASHINGTON 1 

Washington, December 6, 1945 

A. NEED FOR INTERNATIONAL ECONOMIC CO-OPERATION 

1. Collective measures to safeguard the peoples of the world 
against threats to peace and to reach just settlements of disputes 
among nations must be based not only on international machinery 
to deal directly with disputes and to prevent aggression, but also on 
economic co-operation among nations with the object of preventing 
and removing economic and social maladjustments, of achieving 
fairness and equity in economic relations between states, and of 
raising the level of economic well-being among all peoples. 

2. Important contributions have already been made toward the 
attainment of these objectives. The Food and Agriculture Organiza- 
tion of the United Nations has been established. An International 
Monetary Fund to maintain reasonable exchange stability and 
facilitate adjustment in the balance of payments of member coun- 
tries, and an International Bank for Reconstruction and Develop- 
ment to provide financial resources on a co-operative basis for those 
purposes are awaiting the action of governments required for their 
establishment. 

3. In order to reach the objectives of the Atlantic Charter and 
Article VII of the mutual-aid agreements, it is essential that the co- 
operative economic measures already taken or recommended be sup- 
plemented by further measures dealing directly with trade barriers 

1 Cmd. 6709. 

235 



PROPOSALS ON TRADE AND EMPLOYMENT 

and discriminations which stand in the way of an expansion of 
multilateral trade and by an undertaking on the part of nations to 
seek full employment. 

4. Co-operative action with respect to trade and employment is 
indispensable to the success of such other measures as those dealing 
with monetary and exchange stability and the flow of investment 
capital. Effective action in regard to employment and to trade 
barriers and discriminations must, therefore, be taken or the whole 
programme of international economic co-operation will fail, and an 
economic environment conducive to the maintenance of peaceful 
international relations will not be created. 

B. PROPOSALS CONCERNING EMPLOYMENT 

Since high and stable levels of employment are a necessary con- 
dition for an enlarged volume of trade, and since problems of trade 
and employment are to be considered jointly at an international 
conference, the following propositions are advanced. 

GOVERNING PRINCIPLES 

1. It is recognized that: 

(a) In all countries high and stable employment is a main con- 
dition for the attainment of satisfactory levels of living. 

(b) The attainment of approximately full employment by the 
major industrial and trading nations, and its maintenance on a 
reasonably assured basis, are essential to the expansion of 
international trade on which the full prosperity of these and 
other nations depends; to the full realization of the objectives 
of all liberal international agreements in such fields as com- 
mercial policy, commodity problems, restrictive business prac- 
tices, monetary stabilization, and investment; and, therefore, 
to the preservation of world peace and security. 

2. Domestic programmes to expand employment should be con- 
sistent with realization of the purposes of liberal international agree- 
ments and compatible with the economic well-being of other nations. 

3. It is recognized that the adoption of the Bretton Woods Agree- 
ments and of measures to reduce restrictions on trade will contribute 
substantially to the maintenance of productive employment. 

4. The United Nations have pledged, in the Charter of the United 
Nations Organization, to take joint and separate action in co- 
operation with the Organization to achieve the economic and social 
purposes of the United Nations, including higher standards of living, 
full employment, and conditions of economic and social progress and 
development. 

236 



PROPOSALS ON TRADE AND EMPLOYMENT 

EFFECTUATION OF AIMS 

There should be an undertaking that: 

1. Each of the signatory nations will take action designed to 
achieve and maintain full employment within its own juris- 
diction, through measures appropriate to its political and 
economic institutions. 

2 . No nation will seek to maintain employment through measures 
which are likely to create unemployment in other countries or 
which are incompatible with international undertakings de- 
signed to promote an expanding volume of international trade 
and investment in accordance with comparative efficiencies of 
production. 

3. Signatory nations will make arrangements, both individually 
and collaborativcly under the general sponsorship of the 
Economic and Social Council of the United Nations Organiza- 
tion, for the collection, analysis and exchange of information on 
employment problems, trends, and policies. 

4. Signatory nations will, under the general sponsorship of the 
Economic and Social Council, consult regularly on employ- 
ment problems and hold special conferences in case of threat 
of widespread unemployment. 

C. PROPOSALS CONCERNING AN INTERNATIONAL TRADE 
ORGANIZATION 

NEED FOR AN INTERNATIONAL TRADE ORGANIZATION 

1 . Measures designed to effect an expansion of trade are essential 
because of their direct contribution to maximum levels of employ- 
ment, production and consumption. Since such expansion can only 
be attained by collective measures, in continuous operation and 
adaptable to economic changes, it is necessary to establish permanent 
machinery for international collaboration in matters affecting inter- 
national commerce, with a view to continuous consultation, the 
provision of expert advice, the formulation of agreed policies, pro- 
cedures and plans, and to the development of agreed rules of con- 
duct in regard to matters affecting international trade. 

2. It is accordingly proposed that there be created an International 
Trade Organization of the United Nations, the members of which 
would undertake to conduct their i nternational commercial policies 
and relations in accordance with agreed principles to be set forth in 
the articles of the Organization. These principles, in order to make 
possible an effective expansion of world production, employment, 
exchange and consumption, should: 

237 



PROPOSALS ON TRADE AND EMPLOYMENT 

(a) Provide an equitable basis for dealing with the problems of 
governmental measures affecting international trade; 

(b) Provide for the curbing of restrictive trade practices resulting 
from private and international business arrangements; and 

(c) Govern the institution and operation of inter-governmental 
commodity arrangements. 

PROPOSED INTERNATIONAL TRADE ORGANIZATION 

There follows an outline of the principles which it is proposed 
should be incorporated in the articles of the Organization. 



CHAPTER I 
PURPOSES 
The purposes of the Organization should be: 

1. To promote international commercial co-operation by estab- 
lishing machinery for consultation and collaboration among 
member governments regarding the solution of problems in the 
field of international commercial policies and relations. 

2. To enable members to avoid recourse to measures destructive 
of world commerce by providing, on a reciprocal and mutually 
advantageous basis, expanding opportunities for their trade 
and economic development. 

3. To facilitate access by all members, on equal terms, to the trade 
and to the raw materials of the world which are needed for 
their economic prosperity. 

4. In general, to promote national and international action for the 
expansion of the production, exchange and consumption of 
goods, for the reduction of tariffs and other trade barriers, and 
for the elimination of all forms of discriminatory treatment in 
international commerce; thus contributing to an expanding 
world economy, to the establishment and maintenance in all 
countries of high levels of employment and real income, and to 
the creation of economic conditions conducive to the main- 
tenance of world peace. 

CHAPTER II 

MEMBERSHIP 

The original members of the Organization should be those coun- 
tries participating in the Conference on Trade and Employment 
which accept membership. 



238 



PROPOSALS ON TRADE AND EMPLOYMENT 

CHAPTER III 

GENERAL COMMERCIAL POLICY 

Section A. General Commercial Provisions 
Members should undertake: 

1 . To accord to products imported from other members treatment 
no less favourable than that accorded to domestic products 
with regard to matters affecting the internal taxation and regu- 
lation of the trade in goods. 

2. To provide, for products in transit through their territories, 
coming from or going to other members, freedom from cus- 
toms and transit duties, from unreasonable transit charges, and 
from discriminatory treatment of all kinds. 

3. To subscribe to a general definition of the circumstances under 
which antidumping and countervailing duties may properly be 
applied to products imported from other members. 

4. To give effect, as soon as practicable, to agreed principles of 
tariff valuation designed to assure the use of true commercial 
values as a basis for assessing duties, and to co-operate with 
other members and with the Organization in working out 
internationally acceptable valuation procedures of a standar- 
dized character. 

5. To give effect, as soon as practicable, to agreed principles 
looking toward the simplification of customs formalities with a 
view to eliminating unnecessary requirements which afford an 
indirect protection to domestic products. 

6. To eliminate excessive requirements regarding marks of origin 
in so far as they affect products imported from other members. 

7. To refrain from governmentally financed or organized boycotts 
or campaigns designed to discourage, directly or indirectly, im- 
portation or consumption of products of other members. 

8. To provide for adequate publicity regarding laws and regula- 
tions affecting foreign trade, and to maintain or establish 
national tribunals of an independent character to review and 
correct administrative customs action. 

9. To transmit to the Organization appropriate trade informa- 
tion and statistics. 

10. To co-operate with the Organization and with other members 
in carrying out or implementing the articles of the Organiza- 
tion. 

Section B. Tariffs and Preferences 

i. Import tariffs and preferences . In the light of the principles set forth 
in Article VII of the mutual-aid agreements, members should enter 

239 



PROPOSALS ON TRADE AND EMPLOYMENT 

into arrangements for the substantial reduction of tariffs and for the 
elimination of tariff preferences, action for the elimination of tariff 
preferences being taken in conjunction with adequate measures for 
the substantial reduction of barriers to world trade, as part of the 
mutually advantageous arrangements contemplated in this docu- 
ment. 

As an initial step in the process of eliminating tariff preferences it 
should be agreed that: 

(a) Existing international commitments will not be permitted to 
stand in the way of action agreed upon with respect to tariff 
preferences. 

(b) All negotiated reductions in most-favoured-nation tariffs 
will operate automatically to reduce or eliminate margins of 
preference. 

(c) Margins of preference on any product will in no case be in- 
creased and no new preferences will be introduced. 

2. Export tariffs and preferences. Export duties should be open to 
negotiation in the same way as import duties. Members should 
undertake not to impose or maintain export duties which differen- 
tiate by reference to the destinations to which the goods are 
exported. 

3. Emergency action. Commitments with regard to tariffs should per- 
mit countries to take temporary action to prevent sudden and wide- 
spread injury to the producers concerned. Undertakings for reducing 
tariffs should therefore contain an escape clause to cover such con- 
tingencies. 

Section G. Quantitative Trade Restrictions 

i . General elimination of quantitative restrictions. Except as provided 
for elsewhere in this Chapter, members should undertake not to 
maintain any quotas, embargoes, or other quantitative restrictions 
on their export or import trade with other members. This under- 
taking should not, however, apply to the following: 

(a) Import and export prohibitions or restrictions, imposed during 
the early post-war transitional period, which are essential to 
(a) the efficient use of shipping space in short supply, (b) the 
equitable international distribution of products in short sup- 
ply, or (c) the orderly liquidation of temporary surpluses of 
government stocks accumulated as a result of the war. Such 
prohibitions and restrictions should be removed not later than 
three years after the close of hostilities, but provision should be 
made whereby this period may be extended with the concur- 
rence of the Organization. 

240 



PROPOSALS ON TRADE AND EMPLOYMENT 

(b) Export prohibitions or restrictions temporarily imposed to 
relieve conditions of distress in the exporting country caused by 
severe shortages of foodstuffs or other essential products. 

(c) Export prohibitions or restrictions necessary to the application 
of suitable standards for the classification and grading of com- 
modities in international commerce. 

(d) Export or import quotas imposed under inter-governmental 
commodity agreements conforming to the principles set forth 
in Chapter V. 

(e) Import quotas on agricultural products, imported in any 
form, necessary to the enforcement of governmental measures 
which operate (a) to restrict the quantities of like domestic 
products which may be marketed or produced, or (b) to re- 
move a temporary surplus of like domestic products by making 
such surpluses available to certain groups of domestic con- 
sumers free of charge or at prices below the current market 
level. Such quotas should not be more restrictive than neces- 
sary, should be removed as soon as they cease to be necessary 
for the purposes of this sub-paragraph, and should be made 
the subject of periodic consultation with the Organization. If 
such quotas are allocated among sources of supply, they should 
be allocated fairly, on the basis of imports during a previous 
representative period, account being taken in so far as prac- 
ticable of any special factors which may have affected or 
which may be affecting the trade in the product concerned. 
Import quotas imposed under (a) of this subparagraph should 
not be such as would reduce imports relatively to domestic 
production as compared with the proportion prevailing in a 
previous representative period, account being taken in so far 
as practicable of any special factors which may have affected 
or which may be affecting the trade in the product concerned. 

2. Restrictions to safeguard the balance of payments. Members confronted 
with an adverse balance of payments should be entitled to impose 
quantitative import restrictions as an aid to the restoration of equili- 
brium in the balance of payments. This provision should be operative 
under conditions and procedures to be agreed upon. These con- 
ditions and procedures 

(a) should set forth criteria and requirements in the light of which 
balance-of-payments restrictions might be imposed; 

(b) should, as regards the use of such restrictions in the post-war 
transitional period, be framed on principles which would be 
designed to promote the maximum development of multi- 
lateral trade during that period and which in no event would 

q 241 



PROPOSALS ON TRADE AND EMPLOYMENT 

be more restrictive of such trade than the principles applicable, 
under Article XIV of the International Monetary Fund 
Agreement, to the use of exchange restrictions in the tran- 
sitional period; 

(c) should provide for the determination of the transitional period 
for the purposes of sub-paragraph (b) 9 above, by a procedure 
analogous to that contained in Article XIV of the Inter- 
national Monetary Fund Agreement; 

(d) should provide for the full application of non-discrimination 
in the use of such restrictions after the transitional period; 
and 

(e) should make appropriate provision for international consulta- 
tion regarding balance-of-payments restrictions, whether im- 
posed during the transitional period or thereafter. 

3. Equality of treatment. Quantitative restrictions imposed on 
balance-of-payments grounds should be deemed non-discriminatory 
if they are administered on a basis which does not discriminate 
among sources of supply in respect of any imported product. 

(a) In the case of restrictions imposed in the form of quotas, mem- 
bers imposing such quotas should publish the global amounts 
or values of the various products which will be permitted to be 
imported during a specified future period. Any allocation of 
such quotas among sources of supply should be based insofar 
as practicable upon the proportion of the total imports of the 
product in question supplied by the various member countries 
in a previous representative period, account being taken of 
any special factors which may have affected or which may be 
affecting the trade in thai product. 

(b) In the case of restrictions not imposed in the form of quotas, 
the member imposing the restrictions should undertake to 
provide, upon the request of any other member having an 
interest in the product concerned, all relevant information as 
to the administration of the restriction, including information 
as to the import licences granted over a past period and the 
distribution of such licences among sources of supply. 

(c) Any member should be entitled to raise with the Organization 
the question as to whether another member was imposing 
balance-of-payments restrictions, whether in the form of 
quotas or otherwise, in a manner not in harmony with the 
guiding principles stated above or in a manner which un- 
necessarily injured its commerce, and the member imposing 
the restrictions should undertake in these circumstances to 
discuss the grounds on which it had acted. 

242 



PROPOSALS ON TRADE AND EMPLOYMENT 

4. Inconvertible currencies. The undertakings set forth in paragraph 3, 
above, should not apply in cases in which their application would 
have the effect of preventing a member from utilizing inconvertible 
currencies for buying needed imports. 

5. Scarce currencies and currencies of territories having a common quota in 
the Monetary Fund. Members should not be precluded by this Section 
from applying quantitative restrictions (a) in pursuance of action 
which they may take under Article VII of the International Mone- 
tary Fund Agreement, relating to scarce currencies, or (b] in a 
manner designed to maintain the par value of the currencies of 
territories having a common quota in the Monetary Fund, in ac- 

'cordance with Article XX, Section 4 (g) of that Agreement. 

6. Application of quantitative restrictions by state-trading organizations. 
The provisions of this Section relating to quantitative restrictions on 
imports for balance-of-payments reasons should apply equally to the 
restriction of imports by state-trading organizations for the same 
reasons. 

Section D. Subsidies 

1. Subsidies in general. Subject to the provisions of paragraphs 2 and 
3, below, members granting any subsidy which operates to increase 
exports or reduce imports should undertake to keep the Organiza- 
tion informed as to the extent and nature of the subsidy, as to the 
reason therefor and as to the probable effects on trade. They should 
also be prepared, in cases where, under procedures approved by the 
Organization, it is agreed that serious injury to international trade 
threatens to result from the operation of the subsidy, to discuss with 
other members or with the Organization possible limitations on the 
quantity of the domestic product subsidised. In this paragraph, the 
term "subsidy" includes any form of internal income or price 
support. 

2. Export subsidies. Subject to the provisions of paragraph 3, below, 
members should undertake not to take any action which would re- 
sult in the sale of a product in export markets at a price lower than 
the comparable price charged for the like product to buyers in the 
home market, due allowance being made for differences in con- 
ditions and terms of sale, for differences in taxation, and for other 
differences affecting price comparability. This undertaking should 
take effect, at latest, within three years of the establishment of the 
Organization. If at the end of that time any member considers 
itself unable to comply with the undertaking in respect of any par- 
ticular commodity or commodities it should inform the Organiza- 
tion, with an explanation of the reasons. It should then be decided by 
consultation among the interested members under procedures 

243 



PROPOSALS ON TRADE AND EMPLOYMENT 

approved by the Organization whether there should be some further 
extension of time for the member desiring it in respect of the com- 
modity or commodities concerned. 
3. Commodities in surplus supply' 

(a) When it is determined, in accordance with procedures ap- 
proved by the Organization, that a commodity is, or is likely 
to become in burdensome world surplus, the members which 
are important producers or consumers of the commodity 
should agree to consult together with a view to promoting 
consumption increases, to promoting the reduction of pro- 
duction through the diversion of resources from uneconomic 
production, and to seeking, if necessary, the conclusion of an 
inter-governmental commodity arrangement in accordance 
with the principles of Chapter V. 

(b) If, however, within a reasonable time to be agreed upon, such 
steps should fail of their object, the provisions of paragraphs i 
and 2, above, should cease to apply to such product until such 
time as it has been agreed under procedures approved by the 
Organization that those provisions should be re-applied to it. 

(c) With regard to any export subsidies which may be imposed 
under sub-paragraph (&), no member should employ such 
subsidies so as to enlarge its share of the world market, as 
compared with the share prevailing in a previous representa- 
tive period. The question as to what period would be repre- 
sentative in respect of the particular product concerned 
should be a subject for international consultation through the 
Organization. 

Section E. State Trading 

1 . Equality of treatment. Members engaging in state trading in any 
form should accord equality of treatment to all other members. To 
this end, members should undertake that the foreign purchases and 
sales of their state-trading enterprises shall be influenced solely by 
commercial considerations, such as price, quality, marketability, 
transportation and terms of purchase or sale. 

2. State monopolies of individual products. Members maintaining a 
state monopoly in respect of any product should undertake to nego- 
tiate, in the manner contemplated for tariffs, the maximum pro- 
tective margin between the landed price of the product and the price 
at which the product (of whatever origin, domestic or foreign) is sold 
in the home market. Members newly establishing such monopolies 
should agree not to create protective margins greater than the tariffs 
which may have been negotiated in regard to those products. Unless 
the product is subject to rationing, the monopoly should offer for sale 

244 



PROPOSALS ON TRADE AND EMPLOYMENT 

such quantities of the product as will be sufficient to satisfy the full 
domestic demand. 

3. Complete state monopolies of foreign trade. As the counterpart of 
tariff reductions and other actions to encourage an expansion of 
multilateral trade by other members, members having a complete 
state monopoly of foreign trade should undertake to purchase an- 
nually from members, on the non-discriminatory basis referred to in 
paragraph i , above, products valued at not less than an aggregate 
amount to be agreed upon. This global purchase arrangement 
should be subject to periodic adjustment in consultation with the 
Organization. 

Section F. Exchange Control 

1. Relation to the International Monetary Fund. In order to avoid the 
imposition of trade restrictions and discriminations through ex- 
change techniques, the members of the International Trade Or- 
ganization should abide by the exchange principles established 
pursuant to the Articles of Agreement of the International Monetary 
Fund and for this reason it should be required that the Organization 
and the Fund have a common membership. 

2. Equality of Exchange Treatment. Members maintaining or estab- 
lishing exchange restrictions should undertake to accord to the trade 
of other members the equality of treatment with respect to all as- 
pects of such restrictions required under the provisions of the 
Articles of Agreement of the International Monetary Fund or, in 
cases where the approval of the Fund is required, the equality of 
treatment prescribed by the Fund after consultation with the In- 
ternational Trade Organization. 

Section G. General Exceptions 

The undertakings in this Chapter should not be construed to pre- 
vent members from adopting or enforcing measures: 

1. necessary to protect public morals; 

2. necessary to protect human, animal or plant life or health; 

3. relating to the traffic in arms, ammunition and implements of 
war, and, in exceptional circumstances, all other military 
supplies; 

4. relating to the importation or exportation of gold or silver; 

5. necessary to induce compliance with laws or regulations, such 
as those relating to customs enforcement, deceptive practices, 
and the protection of patents, trademarks and copyrights, 
which are not inconsistent with the purposes of the Organiza- 
tion; 

6. relating to prison-made goods; 

245 



PROPOSALS ON TRADE AND EMPLOYMENT 

7. imposed for the protection of national treasures of artistic, 
historic or archaeological value; 

8. undertaken in pursuance of obligations for the maintenance of 
peace and security; or 

9. imposed, in exceptional cases, in accordance with a recommen- 
dation of the Organization formulated in accordance with 
criteria and procedures to be agreed upon. 

Section H. Territorial Application of Chapter III 

1. Customs territories. The provisions of Chapter III should apply 
to the customs territories of the members. If any member has more 
than one customs territory under its jurisdiction, each customs 
territory should be considered a separate member for the purpose of 
applying the provisions of Chapter III. 

2. Frontier traffic and customs unions. The provisions of Chapter III 
should not prevent any member (a) from according advantages to 
adjacent countries in order to facilitate frontier traffic, or (b) from 
joining a customs union, provided that such customs union meets 
certain agreed criteria. Members proposing to join a customs union 
should consult with the Organization and should make available to 
it such information as would enable it to make appropriate reports 
and recommendations. 

CHAPTER IV 

RESTRICTIVE BUSINESS PRACTICES 

1. Curbing of restrictive business practices. There should be individual 
and concerted efforts by members of the Organization to curb those 
restrictive business practices in international trade (such as com- 
binations or agreements to fix prices and terms of sale, divide mar- 
kets or territories, limit production or exports, suppress technology 
or invention, exclude enterprises from particular fields, or boycott or 
discriminate against particular firms) which have the effect of 
frustrating the objectives of the Organization to promote expansion 
of production and trade, equal access to markets and raw materials, 
and the maintenance in all countries of high levels of employment 
and real income. 

2. Co-operation among members. In order to achieve the purposes of 
paragraph i , the Organization should be charged with the further- 
ance of this objective. The Organization should receive complaints 
from any member (or, with the permission of the member, from 
commercial enterprises within its jurisdiction who allege that their 
interests are affected), that the objectives of the Organization are 
being frustrated by a private international combination or agree- 
ment. The Organization should be empowered to call upon any 

246 



PROPOSALS ON TRADE AND EMPLOYMENT 

member to provide information relevant to such a complaint; it 
should consider such data and, if warranted, make recommendations 
to the appropriate members for action in accordance with their 
respective laws and procedures; it should be empowered to request 
reports from members as to their actions in implementing such 
recommendations, and to report thereon. The Organization should 
also be authorized, within the scope of its subject matter, to conduct 
studies, to make recommendations concerning uniform national 
standards, and to call conferences of member states for purposes of 
general consultation. 

3. Continued effectiveness of national laws and regulations directed against 
restrictive business practices. Any act or failure to act on the part of the 
Organization should not preclude any member from enforcing 
within its own jurisdiction any national statute or decree directed 
toward the elimination or prevention of restrictive business practices 
in international trade. 

4. Special enforcement arrangements. It should be provided that 
members may, by mutual accord, co-operate in measures for the 
purpose of making more effective any remedial order which has 
been issued by a duly authorized agency of another member. 



CHAPTER V 

INTER-GOVERNMENTAL COMMODITY ARRANGEMENTS 

The production of, and trade in, primary commodities is exposed 
to certain difficulties different in character from those which generally 
exist in the case of manufactured goods; and these difficulties, if 
serious, may have such widespread repercussions as to prejudice the 
prospect of the general policy of economic expansion. Members 
should therefore agree upon the procedure which should be adopted 
to deal with such difficulties. 

i . Special commodity studies 

(a) Special studies should be made in accordance with the pro- 
cedure set forth in (6), below, of the position of particular com- 
modities of which excess supplies exist or are threatened, to the 
end that, if possible, consumption may be increased and the 
anticipated difficulties may thereby be averted. 

(b) Members substantially interested in the production or con- 
sumption of a particular commodity should be entitled, if they 
consider that special difficulties exist or are expected to arise 
regarding that commodity, to ask that a special study of that 
commodity be made, and the Organization, if it finds that 
these representations are well founded, should invite the mem- 

247 



PROPOSALS ON TRADE AND EMPLOYMENT 

bers principally concerned in the production or consumption 
of that commodity to appoint representatives to a Study Group 
to make a special study of that commodity. 

2. Inter-governmental commodity conferences. If it is concluded, in the 
light of an investigation of the root causes of the problem, that 
measures for increasing the consumption of a commodity are un- 
likely to operate quickly enough to prevent excess supplies of the 
commodity from accumulating, the members may ask the Organiza- 
tion to convene an inter-governmental conference for the purpose of 
framing an inter-governmental commodity agreement for the com- 
modity concerned. 

3. Objectives of inter-governmental commodity agreements. It should be 
recognized that inter-governmental commodity agreements in- 
volving restrictions on production or trade would be justified in the 
circumstances stated in paragraph 2 above to achieve the following 
objectives: 

(a) To enable member countries to find solutions to particular 
commodity problems without resorting to unilateral action 
that tends to shift the burden of their problems to other coun- 
tries. 

(b) To prevent or alleviate the serious economic problems which 
may arise when, owing to the difficulties of finding alternative 
employment, production adjustments cannot be effected by 
the free play of market forces as rapidly as the circumstances 
require. 

(c) To provide a period of transition which will afford oppor- 
tunities for the orderly solution of particular commodity prob- 
lems by agreement between member governments upon a 
programme of over-all economic adjustments designed to 
promote a shift of resources and man-power out of over- 
expanded industries into new and productive occupations. 

4. Principles of inter-governmental commodity agreements. Members 
should undertake to adhere to the following principles governing the 
institution of inter-governmental commodity agreements: 

(a) Members having an interest in the production or consumption 
of any commodity for which an inter-governmental commo- 
dity agreement is proposed, should be entitled to participate 
in the consideration of the proposed agreement. 

(b) Members should undertake not to enter into inter-govern- 
mental commodity agreements involving the limitation of 
production or exports or the allocation of markets, except 
after: 

248 



PROPOSALS ON TRADE AND EMPLOYMENT 

(1) Investigation by the Study Group of the root causes of the 
problem which gave rise to the proposal; 

(2) Determination, in accordance with procedures approved 
by the Organization, either: 

(a) that a burdensome surplus of the product concerned 
has developed or is developing in international trade, 
and is accompanied by widespread distress to small 
producers accounting for a substantial proportion of 
the total output and that these conditions cannot be 
corrected by the normal play of competitive forces be- 
cause, in the case of the product concerned, a sub- 
stantial reduction of price leads neither to a significant 
increase in consumption nor to a significant decrease in 
production; or 

(b) that widespread unemployment, unrelated to general 
business conditions, has developed or is developing in 
respect of the industry concerned and that such un- 
employment cannot be corrected by the normal play 
of competitive forces rapidly enough to prevent wide- 
spread and undue hardship to workers because, in the 
case of the industry concerned, (i) a substantial reduc- 
tion of price does not lead to a significant increase in 
consumption but leads instead to the reduction of em- 
ployment, and (ii) the resulting unemployment cannot 
be remedied by normal processes or reallocation; 

(3) Formulation and adoption by members of a programme of 
economic adjustment believed to be adequate to ensure 
substantial progress toward solution of the problem within 
the time limits of the agreement. 

(c) Inter-governmental agreements involving the limitation of 
production or exports or the allocation of markets in respect of 
fabricated products should not be resorted to unless the Or- 
ganization finds that exceptional circumstances justify such 
action. Such agreements should be subject to the principles set 
forth in this Chapter, and, in addition, to any other require- 
ments which the Organization may establish. 

5. Operation of commodity agreements. Members should undertake to 
adhere to the following principles governing the operation of inter- 
governmental commodity agreements: 

(a) The agreements should be open to accession by any member on 
terms not less favourable than those accorded to members 
parties thereto. 

249 



PROPOSALS ON TRADE AND EMPLOYMENT 

(b) The members adhering to such agreements which are largely 
dependent for consumption on imports of the commodity in- 
volved should, in any determinations made relating to the 
regulation of prices, trade, stocks, or production, have together 
a voice equal to those largely interested in obtaining export 
markets for their production. 

(c) The agreements should, when necessary, contain provisions 
for assuring the availability of supplies adequate at all times 
for world consumption requirements at reasonable prices. 

(d) The agreements should, with due regard to the transitional 
need for preventing serious economic and social dislocation, 
make appropriate provision to afford increasing opportunities 
for satisfying world requirements from sources from which 
such requirements can be supplied most effectively. 

6. Termination and renewal of commodity agreements. Inter-govern- 
mental commodity agreements should not remain initially in effect 
for more than five years. The renewal of an agreement should be 
subject to the principles governing new agreements set forth in para- 
graph 4, above, and to the additional principle that either (a) sub- 
stantial progress toward a solution of the underlying problem shall 
have been accomplished during the initial period of the agreement, 
or that (b) the renewed agreement is so revised as to be effective for 
this purpose. 

7. Review of commodity agreements. Members should undertake to 
transmit to the Organization, for review, inter-governmental com- 
modity agreements in which they now participate or in which they 
propose to participate in the future. Members should also transmit 
to the Organization appropriate information regarding the formula- 
tion, provisions and operation of such agreements. 

8. Publicity. Full publicity should be given to any commodity 
agreement proposed or concluded, to the statements of considerations 
and objectives advanced by the proposing members, to the operation 
of the agreements, and to the nature and development of measures 
adopted to correct the underlying situation which gave rise to the 
agreement. 

9. Exceptions. The provisions of Chapter V are not designed to 
cover international agreements relating to the protection of public 
morals; the protection of human, animal or plant life or health; 
the conservation of reserves of exhaustible natural resources; the 
control of international monopoly situations; or the equitable dis- 
tribution of commodities in short supply. However, such agree- 
ments should not be used to accomplish results inconsistent with the 
objectives of Chapter IV or Chapter V. If any such agreement in- 
volves the restriction of production or of international trade, it 

250 



PROPOSALS ON TRADE AND EMPLOYMENT 

should not be adopted unless authorized or provided for by a multi- 
lateral convention subscribed to by a substantial number of nations, 
or unless operated under the Organization. 



CHAPTER VI 

ORGANIZATION 

Section A. Functions 

The functions of the Organization should include the following: 

1. To collect, analyse and publish information, regarding the 
operation of Chapter III, relating to general commercial 
policy, Chapter IV, relating to the prevention of restrictive 
business practices, and Chapter V, relating to inter-govern- 
mental commodity arrangements, or in general regarding 
international trade and commercial policy. 

2. To provide technical assistance to members as may be re- 
quired or appropriate under the provisions of Chapters III, IV 
and V. 

3. To make recommendations to members regarding the opera- 
tion of Chapters III, IV and V, including the following: 

(a) Recommendations regarding the relaxation or removal of 
trade control measures permitted under Chapter III. 

(b) Recommendations as to measures for implementing the 
objectives with regard to restrictive private business prac- 
tices, set forth in Chapter IV. 

(c) Recommendations regarding the application to com- 
modity arrangements under consideration by members of 
the principles governing commodity arrangements set forth 
in Chapter V; and recommendations initiating proposals 
for new commodity arrangements, or proposing such 
modifications, including termination, of commodity ar- 
rangements already concluded, as may be deemed appro- 
priate under the commodity principles or in the general 
interest. 

(d) Recommendations designed to promote the maximum ob- 
tainable consistency in the operation of Chapters III, IV 
and V and in other arrangements in the fields of general 
commercial policy, commodity arrangements and private 
business practices. 

4. To interpret the provisions of Chapters III, IV and V, to con- 
sult with members regarding disputes growing out of the pro- 
visions of those Chapters, and to provide a mechanism for the 
settlement of such disputes. 

251 



PROPOSALS ON TRADE AND EMPLOYMENT 

5. In accordance with criteria and procedures to be agreed upon, 
to waive particular obligations of members, in exceptional cir- 
cumstances. 

6. To make recommendations for international agreements de- 
signed to improve the bases of trade and to assure just and 
equitable treatment for the enterprises, skills and capital 
brought from one country to another, including agreements on 
the treatment of foreign nationals and enterprises, on the treat- 
ment of commercial travellers, on commercial arbitration, and 
on the avoidance of double taxation. 

7. Generally to perform any function appropriate to the purposes 
of the Organization. 

Section B. Organs 

The Organization should have as its principal organs: A Con- 
ference, an Executive Board, a Commercial Policy Commission, a 
Commission on Business Practices, a Commodity Commission, and a 
Secretariat. 

Section C. The Conference 

The Conference should have final authority to determine the 
policies of the Organization and to exercise the powers conferred 
upon the Organization. 

1 . Membership. All states members of the Organization should be 
members of the Conference. 

2. Voting. Each member of the Conference should have one vote. 
Except as may be otherwise specifically provided for, decisions 
of the Conference should be reached by a simple majority vote. 
It may be desirable to provide for special voting arrangements 
with regard to the exercise of certain functions of the Organiza- 
tion. 

3. Sessions. The Conference should meet at least once a year. 

Section D. The Executive Board 

The Executive Board should be authorized to take provisional 
decisions between meetings of the Conference and to exercise such 
powers as may be delegated to it by the Conference. The Conference 
should in general be authorized to delegate its powers to the Execu- 
tive Board. 

i. Membership. The Executive Board should consist of not more 

than eighteen member states, each of which should have one 

representative. Member states of chief economic importance 

should have permanent seats. The Conference should elect the 

252 



PROPOSALS ON TRADE AND EMPLOYMENT 

states to fill the non-permanent seats for three-year terms, one- 
third of the non-permanent members retiring every year. The 
number of non-permanent seats should exceed the number of 
permanent seats, but the latter should not be fewer than one- 
third of the total number of scats. 

2. Voting and sessions. The Executive Board should regulate its own 
procedure. 

Section E. The Commissions 

The Commission on Commercial Policy, the Commission on 
Business Practices and the Commodity Commission should be re- 
sponsible to the Executive Board. Each Commission should be given 
as much initiative and independence of action as may be necessary 
for the effective discharge of its functions. 

1 . Membership. The Commissions should be composed of experts 
appointed by the Executive Board. The terms and other con- 
ditions of office of the members of the Commissions should be 
determined in accordance with regulations prescribed by the 
Conference. Such terms and conditions need not be uniform, 
but may vary from Commission to Commission. Pursuant to 
the reciprocal arrangements with other specialized internation- 
al organizations contemplated in Section H, paragraph 2, of 
this Chapter, provision should be made for appropriate repre- 
sentation on the Commodity Commission of the Food and 
Agriculture Organization of the United Nations and of other 
speciiilizcd international organizations having an important 
interest in the commodity operations discussed in Chapter V. 

2. Chairmen. The Chairmen of the Commissions should be non- 
voting members of the Executive Board and should be per- 
mitted to participate, without vote, in the deliberations of the 
Conference. 

3. Voting and Sessions. Each Commission should regulate its own 
procedure, subject to any decisions made by the Executive 
Board. 

4. Functions. The functions of the Commissions should include the 
following: 

(a) The Commercial Policy Commission. The Commercial Policy 
Commission should: 

(1) Review, and advise the Executive Board regarding, the 
operation of treaties, agreements, practices and policies 
affecting international trade. 

(2) Investigate, and advise the Executive Board regarding, 
the economic aspects of proposals to waive certain 

253 



PROPOSALS ON TRADE AND EMPLOYMENT 

obligations of members in accordance with the pro- 
visions of paragraph 5, Section A, of this Chapter. 

(3) Investigate, and advise the Executive Board regarding, 
the economic aspects of proposed customs unions. 

(4) Develop and recommend to the Executive Board, for 
adoption by members of the Organization, co-opera- 
tive projects of a technical nature in the field of com- 
mercial policy (e.g., standard bases and methods of 
determining dutiable value, uniform customs nomen- 
clature, and standardization of statistical methods and 
nomenclature in foreign trade statistics). 

(5) Develop and recommend to the Executive Board addi- 
tional programmes designed to further the objectives 
of the Organization in the general field of commercial 
policy. 

(b) The Commission on Business Practices. The Commission on 
Business Practices should: 

(1) Inquire into activities on the part of private commercial 
enterprise which have the effect or purpose of restrain- 
ing international trade, restricting access to internation- 
al markets, or of fostering monopolistic controls in 
international trade. 

(2) Advise the Executive Board with regard to the recom- 
mendations which should be made to members in re- 
spect of business divestitures, reorganizations, dis- 
solutions or other remedial actions. 

(3) Conduct investigations and make recommendations to 
the Executive Board looking to the promotion and 
adoption in all countries of codes of fair business prac- 
tices designed to facilitate and enlarge the flow of 
international trade. 

(4) Advise the Executive Board as to the types of informa- 
tion which members should file with the Organization. 

(5) Facilitate appropriate inter-governmental arrange- 
ments for the international exchange of technological 
information, on a non-discriminatory basis. 

(c) The Commodity Commission. The Commodity Commission 
should: 

(i) Investigate commodity problems, including the prob- 
lem of an international buffer stocks organization or 
other arrangements which are proposed as a means of 
promoting solutions to commodity problems. 

254 



PROPOSALS ON TRADE AND EMPLOYMENT 

(2) Make recommendations to the Executive Board on 
appropriate courses of action, including recommenda- 
tions for the establishment of Study Groups for par- 
ticular commodities. Such Study Groups should be 
established by the Executive Board, upon the recom- 
mendations of the Commodity Commission, for the 
purpose of investigating problems with respect to par- 
ticular commodities. The Study Groups should be 
composed of representatives of member governments 
invited to participate by the Executive Board and one 
or more representatives designated by the Commodity 

. Commission. 

(3) Make recommendations to the Executive Board as to 
whether or not a particular commodity is in world 
surplus. 

(4) Make recommendations to the Executive Board as to 
whether an application made by a member for the 
convening of an inter-governmental conference should 
be granted. 

(5) Designate members of the Commission to participate in 
an advisory capacity in the formulation of inter- 
governmental commodity agreements. 

(6) Make recommendations to the Executive Board re- 
garding the application of the commodity agreements 
under consideration by members. 

(7) Designate the Chairman and Secretary for any Com- 
modity Council established to administer an inter- 
governmental commodity agreement. 

(8) Maintain continuous review of the conduct of the opera- 
tions of inter-governmental commodity agreements in 
the light of the terms of the agreements, the commodity 
principles in Chapter V, and the general welfare; and 
make recommendations to the Executive Board with 
regard thereto. 

Section F. Industrial and Mineral Unit 

The Conference should create an Industrial and Mineral Unit 
responsible to the Executive Board. The Industrial and Mineral Unit 
should promote by technical assistance and other appropriate means 
the expansion of production and trade with regard to fabricated pro- 
ducts and with regard to minerals and other primary commodities 
in respect of which such promotional activities are riot under the 
jurisdiction of the Food and Agriculture Organization. 



255 



PROPOSALS ON TRADE AND EMPLOYMENT 

Section G. The Secretariat 

The Secretariat, which should be divided into three or more 
offices, should serve all the organs of the Organization and the 
Commodity Councils established to administer specific commodity 
arrangements. It should be headed by a Director-General. Under 
his authority there should be three or more Deputy Directors- 
General each of whom should be in charge of an office. The Director- 
General, and on the advice of the Director-General, the Deputy 
Directors-General, should be appointed by the Conference upon the 
nomination of the Executive Board. The Director-General should be 
the chief administrative officer of the Organization and should be an 
ex-qfficio member, without vote, of the Executive Board. Three/ 
Deputy Directors-General should be ex officio members of the three 
Commissions. The Director-Genereil and the Deputy Directors- 
General should have the authority to initiate proposals for the con- 
sideration of any organ of the Organization. 

Section H. Relations with other Organizations 

1 . Relations with the United Nations Organization. The Organization 
should be brought into relationship with the United Nations 
Organization on terms to be determined by agreement between the 
Executive Board and the appropriate authorities of the United 
Nations Organization, subject to approval by the Conference. 

2. Relations with other specialized international organizations. In order 
to provide for close co-operation between the Organization and 
other specialized international organizations with related respon- 
sibilities, the Executive Board, subject to the approval of the Con- 
ference, should be authorized to enter into agreements with the 
appropriate authorities of such organizations defining the distribu- 
tion of responsibilities and methods of co-operation. 

3. Administrative arrangements. The Director-General should be 
authorized, subject to the authority of the Conference or of the 
Executive Board, to enter into agreements with other international 
organizations for the maintenance of common services, for common 
arrangements in regard to recruitment, training, conditions of ser- 
vice, and other related matters, and for interchanges of staff. 

JOINT STATEMENT BY THE UNITED STATES AND THE UNITED KINGDOM 
REGARDING THE UNDERSTANDING REACHED ON COMMERCIAL POLICY 

December 6, 1945 

The Secretary of State of the United States has made public to-day 
a document setting forth certain "Proposals for consideration by an 

256 



PROPOSALS ON TRADE AND EMPLOYMENT 

International Conference on Trade and Employment". These pro- 
posals have the endorsement of the Executive branch of the Govern- 
ment of the United States and have been submitted to other govern- 
ments as a basis for discussion preliminary to the holding of such a 
conference. 

Equally, the Government of the United Kingdom is in full agree- 
ment on all important points in these proposals and accepts them as 
a basis for international discussion, and it will, in common with the 
United States Government, use its best endeavours to bring such 
discussions to a successful conclusion, in the light of the views ex- 
pressed by other countries. 

^ The two Governments have also agreed upon the procedures for 
the international negotiation and implementation of these proposals. 
To this end they have undertaken to begin preliminary negotiations 
at an early date between themselves and with other countries for the 
purpose of developing concrete arrangements to carry out these pro- 
posals, including definitive measures for the relaxation of trade 
barriers of all kinds. 

These negotiations will relate to tariffs and preferences, quan- 
titative restrictions, subsidies, State trading, cartels, and other types 
of trade barriers treated in the document published by the United 
States and referred to above. The negotiations will proceed in ac- 
cordance with the principles laid down in that document. 



MOSCOW CONFERENCE* 
Communique", December 24 and 28, 1945 

PART I 

The Governments of the Soviet Union, United Kingdom and 
United States of America announce that they have agreed and have 
requested the adherence of the Governments of France and China to 
the following procedure with respect to the preparation of peace 
treaties. 

i. In the drawing up by the Council of Foreign Ministers of 
treaties of peace with Italy, Rumania, Bulgaria, Hungary, and Fin- 
land only members of the Council who are or under the terms of the 
agreement establishing the Council of Foreign Ministers adopted 
at the Berlin conference are deemed to be signatory of the sur- 
render terms, will participate unless and until the Council takes 
further action under the agreement to invite other members of the 

1 The Times, December 27 and 28, 1945. 
r 257 



SECOND MOSCOW CONFERENCE 

Council to participate on questions directly concerning them. That 
is to say: 

(a) The terms of the peace treaty with Italy will be drafted by the 
Foreign Ministers of the United Kingdom, the United States 
of America, the Soviet Union, and France. 

(b) The terms of the peace treaties with Rumania, Bulgaria, and 
Hungary by the Foreign Ministers of the Soviet Union, the 
United States of America, and the United Kingdom. 

(c) The terms of the peace treaty with Finland by the Foreign 
Ministers of the Soviet Union and the United Kingdom. 

The deputies of the Foreign Ministers will immediately resume 
their work in London on the basis of the understandings reached on 
the question discussed at the first plenary conference of the Council 
of Foreign Ministers in London. 

CONVENING OF CONFERENCE 

2 . When the preparation of all these drafts has been completed 
the Council of Foreign Ministers will convene a conference for the 
purpose of considering the treaties of peace with Italy, Rumania, 
Bulgaria, Hungary, and Finland. The conference will consist of the 
five members of the Council of Foreign Ministers together with all 
members of the United Nations which actively waged war with 
substantial military force against European enemy States -namely, 
the U.S.S.R., the United Kingdom, the United States, China, 
France, Australia, Belgium, Byelo-Russian S.S.R., Brazil, Canada, 
Czechoslovakia, Ethiopia, Greece, India, Netherlands, New Zea- 
land, Norway, Poland, Union of South Africa, Yugoslavia, and 
Ukrainian S.S.R. The conference will be held not later than May i, 
1946. 

3. After the conclusion of the deliberations of the conference and 
upon consideration of its recommendations the States signatory to 
the terms of armistice with Italy, Rumania, Bulgaria, Hungary, and 
Finland, or regarded as such (France being regarded as such for the 
purposes of the peace treaty with Italy), will draw up the final texts 
of the peace treaties. 

4. The final texts of the respective peace treaties, as so drawn up, 
will be signed by representatives of the States represented at the 
conference which arc at war with the enemy States in question. The 
texts of the respective peace treaties will then be submitted to the 
other United Nations which are at war with the enemy States in 
question. 

5. Peace treaties will come into force immediately after they have 
been ratified by the allies signatory to the respective armistices, 

258 



SECOND MOSCOW CONFERENCE 

France being regarded as such in the case of the peace treaty with 
Italy. These treaties are subject to ratification by the enemy States in 
question. 

PART II 

FAR EASTERN COMMISSION AND ALLIED COUNCIL FOR JAPAN 

A FAR EASTERN COMMISSION. Agreement was reached, with the 
concurrence of China, for the establishment of a Far Eastern Com- 
mission to take the place of the Far Eastern Advisory Commission. 
The terms of reference for the Far Eastern Commission are as 
follows: 

Article I 

ESTABLISHMENT OF THE COMMISSION 

A Far Eastern Commission is hereby established composed of the 
representatives of the U.S.S.R., United Kingdom, United States of 
America, China, France, the Netherlands, Canada, Australia, New 
Zealand, India, and the Philippine Commonwealth. 

Article II 

FUNCTIONS 

(a) The functions of the Far Eastern Commission shall be: 

1. To formulate the policies, principles, and standards of con- 
formity with which the fulfilment by Japan of its obligations 
under the terms of surrender may be accomplished. 

2. To review, on the request of any member, any directive issued 
to the Supreme Commander for the allied Powers or any action 
taken by the Supreme Commander involving policy decisions 
within the jurisdiction of the Commission. 

3. To consider such other matters as may be assigned to it by 
agreement among the participating Governments reached in 
accordance with the voting procedure provided for in Article V 
(2) hcreunder. 

(b) The Commission shall not make recommendations with regard 
to the conduct of military operations nor with regard to territorial 
adjustments. 

(c) The Commission in its activities will proceed from the fact that 
there has been formed an Allied Council for Japan and will respect 
existing control machinery in Japan, including the chain of com- 
mand from the United States Government to the Supreme Com- 
mander and the Supreme Commander's command of occupation 
forces. 

259 



SECOND MOSCOW CONFERENCE 

Article III 

FUNCTIONS OF THE UNITED STATES GOVERNMENT 

1 . The United States Government shall prepare directives in ac- 
cordance with policy decisions of the Commission and shall trans- 
mit them to the Supreme Commander through the appropriate 
United States Government agency. The Supreme Commander shall 
be charged with the implementation of the directives which express 
the policy decisions of the Commission. 

2. If the Commission decides that any directive or action reviewed 
in accordance with Article II (a) 2 should be modified, its decision 
shall be regarded as a policy decision. 

3. The United States Government may issue interim directives tc* 
the Supreme Commander pending action by the Commission when- 
ever urgent matters arise not covered by policies already formulated 
by the Commission; provided that any directives dealing with funda- 
mental changes in the Japanese constitutional structure or in the 
regime of control, or dealing with a change in the Japanese Govern- 
ment as a whole will be issued only following consultation and 
following the attainment of agreement in the Far Eastern Com- 
mission. 

4. All directives issued shall be filed with the Commission. 

Article IV 

OTHER METHODS OF CONSULTATION 

The establishment of the Commission shall not preclude the use of 
other methods of consultation on Far Eastern issues by the partici- 
pating Governments. 

Article V 

COMPOSITION 

1 . The Far Eastern Commission shall consist of one representative 
of each of the States party to this agreement. The membership of the 
Commission may be increased by agreement among the participa- 
ting powers as conditions warrant by the addition of representatives 
of other United Nations in the Far East or having territories therein. 
The Commission shall provide for full and adequate consultation, 
as occasion may require, with representatives of the United Nations 
not members of the Commission in regard to matters before the 
Commission which are of particular concern to such nations. 

2. The Commission may take action by less than unanimous vote 
provided that action shall have the concurrence of at least a majority 
of all the representatives including the representatives of the four 

260 



SECOND MOSCOW CONFERENCE 

following powers: United States of America, United Kingdom, 
U.S.S.R. and China. 

Article VI 

LOCATION AND ORGANIZATION 

1. The Far Eastern Commission shall have its headquarters in 
Washington. It may meet at other places as occasion requires, in- 
cluding Tokyo, if and when it deems it desirable to do so. It may 
make such arrangements through the Chairman as may be prac- 
ticable for consultation with the Supreme Commander for the Allied 
Powers. 

2. Each representative on the Commission may be accompanied 
by an appropriate staff comprising both civilian and military repre- 
sentation. 

3. The Commission shall organize its Secretariat, appoint such 
committees as may be deemed advisable, and otherwise perfect 
organization and procedure. 

Article VII 

TERMINATION 

The Far Eastern Commission shall cease to function when a de- 
cision to that effect is taken by the concurrence of at least a majority 
of all the representatives, including the representatives of the four 
following Powers: United States of America, United Kingdom, 
U.S.S.R., and China. Prior to the termination of its functions the 
Commission shall transfer to any interim or permanent security 
organization of which the participating Governments are members 
those functions which may appropriately be transferred. 

It was agreed that the Government of the United States of 
America on behalf of the four Powers should present the terms of 
reference to the other Governments specified in Article I and invite 
them to participate in the Commission on the revised basis. 

B. ALLIED COUNCIL FOR JAPAN. The following agreement was also 
reached with the concurrence of China, for the establishment of an 
Allied Council for Japan: 

i. There shall be established an Allied Council with its seat 
in Tokyo under the Chairmanship of the Supreme Com- 
mander for the Allied Powers (or his deputy) for the purpose of 
consulting with and advising the Supreme Commander in 
regard to the implementation of the terms of surrender, the 
occupation and control of Japan, and of directives supplemen- 
tary thereto; and for the purpose of exercising the control 
authority herein granted. 

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SECOND MOSCOW CONFERENCE 

2. The membership of the Allied Council shall consist of the 
Supreme Commander (or his deputy) who shall be Chairman 
and United States member; a Union of Soviet Socialist Re- 
publics member; a Chinese member; and a member represent- 
ing jointly the United Kingdom, Australia, New Zealand and 
India. 

3. Each member shall be entitled to have an appropriate staff 
consisting of military and civilian advisers. 

4. The Allied Council shall meet not less often than once every 
two weeks. 

5. The Supreme Commander shall issue all orders for the imple 
mentation of the terms of surrender, the occupation and contra* 
of Japan, and directives supplementary thereto. In all cases 
action will be carried out under and through the Supreme 
Commander who is the sole executive authority for the Allied 
Powers in Japan. He will consult and advise with the Council 
in advance of the issuance of orders on matters of substance, 
the exigencies of the situation permitting. His decisions upon 
these matters shall be controlling. 

6. If, regarding the implementation of policy decisions of the Far 
Eastern Commission on questions concerning a change in the 
regime of control, fundamental changes in the Japanese con- 
stitutional structure, and a change in the Japanese Govern- 
ment as a whole, a member of the Council disagrees with the 
Supreme Commander (or his deputy) the Supreme Comman- 
der will withhold the issuance of orders on these questions 
pending agreement thereon in the Far Eastern Commission. 

7. In cases of necessity the Supreme Commander may take de- 
cisions concerning the change of individual Ministers of the 
Japanese Government, or concerning the filling of vacancies 
created by the resignation of individual Cabinet members, after 
appropriate preliminary consultation with the representatives 
of other Allied Powers on the Allied Council. 



PART III 

KOREA 

i. With a view to the re-establishment of Korea as an independent 
State, the creation of conditions for developing the country on demo- 
cratic principles and the earliest possible liquidation of the disastrous 
results of the protracted Japanese domination in Korea, there shall 
be set up a Provisional Korean Democratic Government, which shall 
take all the necessary steps for developing the industry, transport, 

262 



SECOND MOSCOW CONFERENCE 

and agriculture of Korea, and the national culture of the Korean 
people. 

2. In order to assist the formation of a Provisional Korean Govern- 
ment, and with a view to the preliminary elaboration of the appro- 
priate measures, there shall be established a joint Commission con- 
sisting of representatives of th United States Command in southern 
Korea and the Soviet Command in northern Korea. In preparing 
their proposals the Commission shall consult with the Korean Demo- 
cratic parties and social organizations. The recommendations work- 
ed out by the Commission shall be presented foi the consideration of 
the Governments of the U.S.S.R., China, the United Kingdom, and 
the United States of America prior to final decision by the two 
Governments represented on the Joint Commission. 

3. It shall be the task of the Joint Commission with the participa- 
tion of the provisional Korean Democratic Government and of the 
Korean Democratic Organizations to work out measures also for 
helping and assisting (trusteeship) the political, economic, and social 
progress of the Korean people, the development of democratic self- 
government and the establishment of national independence of 
Korea. The proposals of the Joint Commission shall be submitted 
following consultation with the Provisional Korean Government, for 
the joint consideration of the Governments of the U.S.S.R., United 
States of America, United Kingdom and China for the working out 
of an agreement concerning a four- Power trusteeship of Korea for a 
period of up to five years. 

4. For the consideration of urgent problems affecting both southern 
and northern Korea and for the elaboration of measures establishing 
permanent co-ordination in administrative-economic matters be- 
tween the United States Command in southern Korea and the 
Soviet Command in northern Korea, a conference of the repre- 
sentatives of the United States and Soviet Commands in Korea shall 
be convened within a period of two weeks. 



PART IV 

CHINA 

The three Foreign Secretaries exchanged views with regard to the 
situation in China. They were in agreement as to the need for a 
unified and democratic China under the National Government, for 
broad participation by democratic elements in all branches of the 
National Government, and for a cessation of civil strife. They re- 
affirmed their adherence to the policy of non-interference in the 
internal affairs of China. 

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SECOND MOSCOW CONFERENCE 

Mr Molotov and Mr Byrnes had several conversations concerning 
Soviet and American armed forces in China. Mr Molotov stated that 
the Soviet forces had disarmed and deported Japanese troops in 
Manchuria, but that withdrawal of Soviet forces had been post- 
poned until February i at the request of the Chinese Government. 
Mr Byrnes pointed out that American forces were in north China at 
the request of the Chinese Government, and referred also to the 
primary responsibility of the United States in the implementation of 
the terms of surrender with respect to the disarming and deportation 
of Japanese troops. He stated that American forces would be with- 
drawn just as soon as this responsibility was discharged or the Chinese 
Government was in a position to discharge the responsibility withou^ 
the assistance of American forces. 

The two Foreign Secretaries were in complete accord as to the 
desirability of withdrawal of Soviet and American forces from China 
at the earliest practicable moment consistent with the discharge of 
their obligations and responsibilities. 



PARTY 

RUMANIA 

The three Governments are prepared to give King Michael the 
advice for which he has asked in his letter of August 21, 1945, on the 
broadening of the Rumanian Government. 

The King should be advised that one member of the National 
Peasant Party and one member of the Liberal Party should be in- 
cluded in the Government. The Commission referred to below shall 
satisfy itself that: 

(a) They are truly representative members of the groups of the 
parties not represented in the Government; 

(b) They are suitable and will work loyally with the Government. 
The Three Governments take note that the Rumanian Govern- 
ment thus reorganized should declare that free and unfettered 
elections will be held as soon as possible on the basis of uni- 
versal and secret ballot. All democratic and anti-Fascist 
parties should have the right to take part in these elections and 
to put forward candidates. The reorganized Government 
should give assurances concerning the grant of freedom of the 
Press, speech, religion and association. 

A. Y. Vyshinski, Mr Harriman and Sir A. Clark Kerr are au- 
thorized as a Commission to proceed to Bucharest immediately to 
consult with King Michael and members of the present Government, 

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with a view to the execution of the above-mentioned tasks. As soon 
as these tasks are accomplished and the required assurances have 
been received, the Government of Rumania, with which the Soviet 
Government maintains diplomatic relations, will be recognized by 
the Government of the United States of America and by the 
Government of the United Kingdom. 



PART VI 

BULGARIA 

It is understood by the three Governments that the Soviet Govern- 
ment takes upon itself the mission of giving friendly advice to the 
Bulgarian Government with regard to the desirability of the in- 
clusion in the Bulgarian Government of the Fatherland Front, now 
being formed, of an additional two representatives of other demo- 
cratic groups, who (a) are truly representative of the groups of the 
parties which are not participating in the Government, and (b) are 
really suitable and will work loyally with the Government. As soon as 
the Governments of the United States of America and the United 
Kingdom are convinced that this friendly advice has been accepted 
by the Bulgarian Government and the said additional representa- 
tives have been included in its body, the Government of the United 
States of America and the Government of the United Kingdom will 
recognize the Bulgarian Government, with which the Government of 
the Soviet Union already has diplomatic relations. 



PART VII 

THE ESTABLISHMENT BY THE UNITED NATIONS OF A COMMISSION FOR 
THE CONTROL OF ATOMIC ENERGY 

Discussion of the subject of atomic energy related to the question 
of the establishment of a Commission by the General Assembly of the 
United Nations. The Ministers of Foreign Affairs of the U.S.S.R., 
the United States of America, and the United Kingdom have agreed 
to recommend, for the consideration of the General Assembly of the 
United Nations, the establishment by the United Nations of a Com- 
mission to consider problems arising from the discovery of atomic 
energy and related matters. They have agreed to invite the other 
permanent members of the Security Council, France and China, 
together with Canada, to join with them in assuming the initiative in 
sponsoring the following resolution at the first session of the General 
Assembly of the United Nations in January, 1946: 

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Resolved by the General Assembly of the United Nations to 
establish a Commission, with the composition and competence set 
out hereunder, to deal with the problems raised by the discovery 
of atomic energy and other related matters. 



Article I 

ESTABLISHMENT OF THE COMMISSION 

A Commission is hereby established by the General Assembly with 
the terms of reference set out under Article V below. 

Article II 

RELATIONS OF THE COMMISSION WITH THE ORGANS OF THE 
UNITED NATIONS 

(a) The Commission shall submit its reports and recommendations 
to the Security Council, and such reports and recommendations shall 
be made public unless the Security Council, in the interest of peace 
and security, otherwise directs. In the appropriate cases the Security 
Council should transmit these reports to the General Assembly and 
the members of the United Nations, as well as to the Economic and 
Social Council and other organs within the framework of the United 
Nations. 

(b] In view of the Security Council's primary responsibility under 
the Charter of the United Nations for the maintenance of inter- 
national peace and security, the Security Council shall issue direc- 
tions to the Commission in matters affecting security. On these 
matters the Commission shall be accountable for its work to the 
Security Council. 

Article III 

COMPOSITION OF THE COMMISSION 

The Commission shall be composed of one representative from 
each of those States, represented on the Security Council, and 
Canada when that State is not a member of the Security Council. 
Each representative on the Commission may have such assistants as 
he may desire. 

Article IV 

RULES OF PROCEDURE 

The Commission shall have whatever staff it may deem necessary, 
and shall make recommendations for its rules of procedure to the 
Security Council, which shall approve them as a procedural matter. 

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Article V 

TERMS OF REFERENCE OF THE COMMISSION 

The Commission shall proceed with the utmost dispatch and in- 
quire into all phases of the problem and make such recommendations 
from time to time with respect to them as it finds possible. In par- 
ticular, the Commission shall make specific proposals: 

(a) For extending between all nations the exchange of basic 

scientific information for peaceful ends; 
() For control of atomic energy to the extent necessary to ensure 

its use only for peaceful purposes; 

(c) For the elimination from national armaments of atomic 
weapons and all other major weapons adaptable to mass de- 
struction; 

(d) For effective safeguards by way of inspection and other means 
to protect complying States against the hazards of violations 
and evasions. 

The work of the Commission should proceed by separate stages; 
the successful completion of each will develop the necessary con- 
fidence of the world before the next stage is undertaken. The Com- 
mission shall not infringe upon the responsibilities of any organ of the 
United Nations, but should present recommendations for the con- 
sideration of those organs in the performance of their tasks under the 
terms of the United Nations Charter. 

ERNEST BEVIN, JAMES F. BYRNES, 
V. M. MOLOTOV. 



ADDENDUM 1 
VOTING PROCEDURE IN THE SECURITY COUNCIL 

STATEMENT BY THE DELEGATIONS OF THE FOUR SPONSORING GOVERN- 
MENTS ON VOTING PROCEDURE IN THE SECURITY COUNCIL, JUNE 7, I 945* 

Specific questions covering the voting procedure in the Security 
Council have been submitted by a Sub-Committee of the Con- 
ference Committee on Structure and Procedures of the Security 
Council to the delegations of the four Governments sponsoring the 
Conference the United States of America, the United Kingdom of 

1 In view of the importance that the veto has assumed during the first half of 
1946, this document has been included as an addendum. 

*UNCIO,Doc. 852 (English) HI/i/37 (i); Department of Slate, Bulletin, XII, 
p. 1 047. 

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ADDENDUM 

Great Britain and Northern Ireland, the Union of Soviet Socialist 
Republics, and the Republic of China. In dealing with these ques- 
tions, the four delegations desire to make the following statement of 
their general attitude towards the whole question of unanimity of 
permanent members in the decisions of the Security Council. 



1. The Yalta voting formula recognizes that the Security Council, 
in discharging its responsibilities for the maintenance of international 
peace and security, will have two broad groups of functions. Under 
Chapter VIII, the Council will have to make decisions which involve* 
its taking direct measures in connection with settlement of disputes, 
adjustment of situations likely to lead to disputes, determination of 
threats to the peace, removal of threats to the peace, and suppression 
of breaches of the peace. It will also have to make decisions which do 
not involve the taking of such measures. The Yalta formula provides 
that the second of these two groups of decisions will be governed by a 
procedural vote that is, the vote of any seven members. The first 
group of decisions will be governed by a qualified vote that is the 
vote of seven members, including the concurring votes of the five 
permanent members, subject to the proviso that in decisions under 
Section A and a part of Section C of Chapter VIII parties to a dis- 
pute shall abstain from voting. 

2. For example, under the Yalta formula a procedural vote will 
govern the decisions made under the entire Section D of Chapter 
VI. This means that the Council will, by a vote of any seven of its 
members, adopt or alter its rules of procedure; determine the 
method of selecting its President; organize itself in such a way as to 
be able to function continuously; select the times and places of its 
regular and special meetings; establish such bodies or agencies as it 
may deem necessary for the performance of its functions; invite a 
member of the Organization not represented on the Council, to 
participate in its discussions when that Member's interests are 
specially affected; and invite any state when it is a party to a dispute 
being considered by the Council to participate in the discussion 
relating to that dispute. 

3. Further, no individual member of the Council can alone pre- 
vent consideration and discussion by the Council of a dispute or 
situation brought to its attention under paragraph 2, Section A, 
Chapter VIII. Nor can parties to such disputes be prevented by 
these means from being heard by the Council. Likewise, the require- 
ment for unanimity of the permanent members cannot prevent any 
member of the Council from reminding the members of the Organ- 

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ADDENDUM 

ization of their general obligations assumed under the Charter as 
regards peaceful settlement of international disputes. 

4. Beyond this point, decisions and actions by the Security 
Council may well have major political consequences and may even 
initiate a chain of events which might, in the end, require the 
Council under its responsibilities, to invoke measures of enforcement 
under Section B, Chapter VIII. This chain of events begins when 
the Council decides to make an investigation, or determines that the 
time has come to call upon states to settle their differences, or makes 
recommendations to the parties. It is to such decisions and actions 
that unanimity of the permanent members applies, with the im- 
portant proviso, referred to above, for abstention from voting by 
parties to a dispute. 

5. To illustrate: in ordering an investigation, the Council has to 
consider whether the investigation which may involve calling for 
reports, hearing witnesses, dispatching a commission of inquiry, or 
other means might not further aggravate the situation. After 
investigation, the Council must determine whether the continuance 
of the situation or dispute would be likely to endanger international 
peace and security. If it so determines, the Council would be under 
obligation to take further steps. Similarly, the decision to make 
recommendations, even when all parties request it to do so, or to call 
upon parties to a dispute to fulfil their obligations under the Charter, 
might be the first step on a course of action from which the Security 
Council could withdraw only at the risk of failing to discharge its 
responsibilities. 

6. In appraising the significance of the vote required to take such 
decisions or actions, it is useful to make comparison with the require- 
ments of the League Covenant with reference to decisions of the 
League Council. Substantive decisions of the League of Nations 
Council could be taken only by the unanimous vote of all its mem- 
bers, whether permanent or not, with the exception of parties to a 
dispute under Article XV of the League Covenant. Under Article 
XI, under which most of the disputes brought before the League 
were dealt with and decisions to make investigations taken, the 
unanimity rule was invariably interpreted to include even the votes 
of the parties to a dispute. 

7. The Yalta voting formula substitutes for the rule of complete 
unanimity of the League Council a system of qualified majority 
voting in the Security Council. Under this system non-permanent 
members of the Security Council individually would have no "veto". 
As regards the permanent members, there is no question under the 
Yalta formula of investing them with a new right, namely, the right 
to veto, a right which the permanent members of the League 

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ADDENDUM 

Council always had. The formula proposed for the taking of action 
in the Security Council by a majority of seven would make the 
operation of the Council less subject to obstruction than was the case 
under the League of Nations rule of complete unanimity. 

8. It should also be remembered that under the Yalta formula 
the five major powers could not act by themselves, since even under 
the unanimity requirement any decisions of the Council would have 
to include the concurring votes of at least two of the non-permanent 
members. In other words, it would be possible for five non-per- 
manent members as a group to exercise a "veto". It is not to be 
assumed, however, that the permanent members, any more than the 
non-permanent members, would use their "veto" power wilfully to 
obstruct the operation of the Council. 

9. In view of the primary responsibilities of the permanent 
members, they could not be expected, in the present condition of the 
world, to assume the obligation to act in so serious a matter as the 
maintenance of international peace and security in consequence of a 
decision in which they had not concurred. Therefore, if majority 
voting in the Security Council is to be made possible, the only 
practicable method is to provide, in respect of non-procedural 
decisions, for unanimity of the permanent members plus the con- 
curring votes of at least two of the non-permanent members. 

10. For all these reasons, the four sponsoring Governments 
agreed on the Yalta formula and have presented it to this Con- 
ference as essential if an international organization is to be created 
through which all peace-loving nations can effectively discharge 
their common responsibilities for the maintenance of international 
peace and security. 

II 

In the light of the considerations set forth in Part I of this state- 
ment, it is clear what the answers to the questions submitted by the 
Sub-committee should be, with the exception of Question ig. 1 The 
answer to that question is as follows: 

1 Question 19 of the questionnaire submitted by a Sub-Committee of the Con- 
ference Committee on Structure arid Procedures of the Security Council to the 
delegations of the four Governments sponsoiing the Conference the United 
Stales of America, the United Kingdom of Great Britain and Northern Ireland, 
the Union of Soviet Socialist Republics, and the Republic of China is as follows: 
Under the second paragraph of Chapter VI(C): 

"Section C. Voting, i. Each member of the Security Council should have one 
vote. 

"2. Decisions of the Security Council on procedural matters should be made by 
an affirmative vote of seven members." 

(19) In case a decision has to be taken as to whether a certain point is a pro- 
cedural matter, is that preliminary question to be considered in itself as a proced- 
ural matter or is the veto applicable to such preliminary question? (UNCIO, Doc. 
855 [English] III/i/B/2 [a]; Department of State, Bulletin, xii, p. 1044.) 

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ADDENDUM 

1. In the opinion of the delegations of the sponsoring go- 
vernments, the draft Charter itself contains an indication of the 
application of the voting procedures to the various functions of the 
Council. 

2. In this case, it will be unlikely that there will arise in the future 
any matters of great importance on which a decision will have to be 
made as to whether a procedural vote would apply. Should, how- 
ever, such a matter arise, the decision regarding the preliminary 
question as to whether or not such a matter is procedural must be 
taken by a vote of seven members of the Security Council, including 
the concurring votes of the permanent members. 



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